What is 'Simulation Distance' in Minecraft & What to set it to?

When creating a world in Minecraft Bedrock Edition, or changing your video settings in Java Edition, you may have noticed a setting named
When creating a world in Minecraft Bedrock Edition, or changing your video settings in Java Edition, you may have noticed a setting named Simulation Distance. If you're wondering what is Simulat

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What is 'Simulation Distance' in Minecraft & What to set it to?