This is sort of working as intended, but admittedly confusing. It’s not obvious to me how it should work…
In a Simulate session, the Editor camera does not affect tile selection. This is useful if you want to use the Editor camera to examine the world as it really is without affecting it. It’s the same as starting a normal Play-in-Editor and then clicking the Eject button. You can fly the Editor camera around and see the actual state of the world, including the missing parts of the globe that aren’t drawn because no in-game camera can see them. This is often useful, and I wouldn’t want to change it! And I’m not sure if we can distinguish between these two modes (“Play plus eject” versus “Simulate”).
Similarly, in Simulate mode, you can move the player pawn and watch the tile selection change. Or you can possess it and the tile selection will update live.
But it sounds like you’re expecting to see a normal globe in the Editor view. I guess I don’t understand the potential use-cases here well enough to say how this all should work. Maybe you can tell us a bit more about what you’re using Simulate mode for.