> If we don't think the candle in a simulated universe is a "real candle", why do we consider the intelligence in a simulated universe possibly "real intelligence"?

A candle in Canada can't melt wax in Mexico, and a real candle can't melt simulated wax. If you want to differentiate two things along one axis, you can't just point out differences that may or may not have any effect on that axis. You have to establish a causal link before the differences have any meaning. To my knowledge, intelligence/consciousness/experience doesn't have a causal link with anything.

We know our brains cause consciousness the way we knew in 1500 that being on a boat for too long causes scurvy. Maybe the boat and the ocean matter, or maybe they don't.