We don't know that FW is an illusion. If we did, that would be compatible with the apparent world being some kind of simulation. We also have very lite hope of knowing what kind of simulation we are in from the inside. So the illusory will hypothesis isn't giving us much information about the simulation hypothesis, and the simulation hypothesis doesnt give us much information about free will. This topic doesn't seem to go anywhere.

ETA:

The simulation hypthesis being hard to disprove means almost everything is compatible with it.