Maybe it could be read that way by some, but that's not why the term was adopted and it's not why the term is advocated for by anti-sexual violence organizations.
https://inhope.org/EN/articles/child-sexual-abuse-material
https://www.rainn.org/news/what-child-sexual-abuse-material-...
https://www.thorn.org/blog/decoding-the-language-of-child-se...
As for the fact that making it simulated renders the term meaningless, the entire point of a simulation is that it is not the actual thing that is happening but rather an imitative representation of something that could be real. Presumably the abuse towards a child could be real, and hence it's possible to imitate that abuse in various forms of media. It is that imitation that constitutes the simulation.
If you argue that it makes the term meaningless, then you must accept that the simulation of anything is meaningless.