I agree Elon Musk is being an idiot here, but my take on his argument is that computers are simulating consciousness, not physical reality. I.e., a program is running that makes experience just plausible enough for its observers (or sole observer, in the case of a solipsistic rich psychopath to play capitalist chess with all us NPCs). Then reality is more like a lucid dream, in the sense that trying to do things that make sense or require consistency or deep thought are being constantly avoided by design, in order to avoid overloading the CPU. This would mean that certain career choices and activities would trigger a "Truman Show" like response from the system, in which it conspires to limit utilization just to keep up, so that circumstances succeed in making you think hard enough about something that needs to be consistent.
If this is the case, then whoever designed such a program spent a hell of a lot of time trying to trick us, because if all they wanted to do was make it into a dream-like experience where we are terrorized away from thinking too hard, they could have been a lot lazier and saved a lot of CPU cycles.