You only need to see the first row of lights," said the instructor
I can't find the legal definition of what you need to be able to see at minima on a CAT 1 approach, but it's something like "at least one of the following .. approach lights, runway threshold or lights, VASI/PAPI, TDZ lights or runway edge lights" so your instructor is right.
Right on limits at 200' you're still going to be around 1200m from the touchdown point so likely a km or more from the runway. At those sort of limits/range, all you're going to see are the approach lights unless it's one of those 10km+ below solid 200' cloudbase days.
RANT doesn't give you the whole instrument approach "experience" hence my suggestion to use MSFS where you can even have rain clattering on the window to give a better feel of what you'll see at MDA. The instruments all work properly too and are in the standard places on the panel so a scan is more naturally learned than with RANT. Power settings, flaps, gear etc are all very important aviation items to keep in mind when flying an instrument approach on a dark stormy night, so anything that helps build that learning is a good thing.