Earlier quoted context omitted.
That's why humans should insist on competing with AIs in our world not theirs (simulation). When it matters, the playing field will be stacked heavily against the human who will not have direct access to the informed encoded in the virtual world. Putting it differently, any AI in a simulation is in some sense indistinguishable from the simulation itself (or at least, you should assume so).
It's hard to draw the boundary. We could say that AI should only be given access to exactly the same information that humans have access to. But AI will have magnitudes more memory and compute resources. So for example, an AI could only have the 2D view but it could store, access and process the 2D view in ways a human cannot.
The AI should be given a game screen. I think it should also need to actually use a mouse and keyboard too if im being honest.
I would be way better at games if I only need to think about what I want to do in the game and have it done rather than use some method of physical controls to do so