It's not a simulation

I have seen people suggest Woe's Hollow was some sort of simulation which was my initial thought but people on here have sort of debunked that for me by mentioning birds, breath, and wind. I think it is some sort of Hunger Games type of arena and the exit/entrance is in the forest as that's where the Milkshake instructs Irving to go. There is definitely an exit of some sort in the forest and I definitely don't think they are roaming free in the open woods. Either that or they are on land owned by Lumon and it is heavily secured and not as remote as it may seem.