The problem is realism. Sim City would teach you that a village of 150 people will absolutely grow into a thriving city because that’s the simple premise of the game - it’s a citybuilder - but that’s not how real life works. They could play increasingly more complex simulation games like Democracy 3, and it would still fail to be a realistic look at the complexities of modern society.
I’d also argue the opposite lesson is usually learned from games, because most gamers don’t play on “hardcore” mode - and those that do play hardcore can still always reroll or /ff to start another game or even just touch grass and stop playing the game. Playing God doesn’t reinforce empathy.
Good policy needs to balance a clinical approach against empathetic concerns. My advice to policy makers would be reading books like “Cities and the Wealth of Nations” by Jane Jacobs and learning from modern experts and non-profit advocates like Strong Towns. They should be looking to peers for success stories to emulate and for failures to avoid.
Thank you for your wisdom, Lord Farquaad.