Link is aware of some level of technology, but he hadn't understood "simulation" until now. It's...fake? It feels very real, though. Does this mean eventually they'll wake up? It must mean that.

"I'm not distressed. Confused, I think. Why would they want us to do that? With strangers?" Not that he'd necessarily be down with someone he knew. Ok, maybe a couple of the people he knows. Now isn't the time to think about this!

Link has scars of his own, but they're faint lines on his skin, healed by Sheikah technology, leaving only ghosts of wounds.

"What happened?" he asks, even if it might be too straightforward.