I am not sure this exchange is as damaging for Boeing as some are making out.
I say this because I suspect it may be explained away as a sim fault.
He said he was levelling at 4000 and 230 kts which is nowhere near the AOA that would activate MCAS.
So either A) the exercise didn’t involve MCAS and there was a simple sim fault ( no big deal for Boeing)
or
B) the exercise involved simulating an aircraft fault and MCAS came into play ( big deal for Boeing to have this exchange take place).
That’s how I read it.