IP simulation model

My intention is exactly as you described: "to simulate the IP and test the IP functionality". It's the 1st task. The 2nd one is a simulation of higher-level subdesigns and, finally, a complete project. I'm not simulating anything at the moment.

About your info "older/legacy devices that use megawizard does not have the flexibility to do so". Isn't it contradicting with info provided on the web page https://www.intel.com/content/www/us/en/docs/programmable/683463/23-4/generating-ip-simulation-files.html and some others (for example ug_intro_to_megafunctions-683102-773176.pdf chapters 1.4 & 1.5)?