This is way too deep to be thinking about in a sleep-deprived state but I'll give it a go.
I would say for a simulated person, the flow of time appears to remain constant, even if the simulation is sped up, slowed, halted, or even reversed, as long as everything related to the simulation was scaled by the same factor.
The mechanism by which time is perceived is modified by the same factor as the simulation, so the reference point appears unchanging. For example, if you double the speed, a simulated watch runs twice as fast, and the person's neuronal activity proceeds twice as fast, and events proceed twice as fast, so there's no noticeable difference.
Now if we sped up the person's simulated brain whilst leaving other aspects of the simulation unchanged, time would appear to proceed more slowly, since more thought occurs between events, and analysis can be performed at a higher resolution of time.
how does the rate of passage of time in the simulation correspond to the actual rate of passage of time of the 'real' Turing machine?
The rate at which time proceeds in the simulation and the "real" timeframe are unconnected. The simulated timeline can flow both ways at any speed within the limits of computation. Reality is fixed in one direction at a single speed.
But then, what determines their rate of time? Where does it come from?
By reference to the flow of simulated events, and the rate at which the mechanism for the perception of time works at.
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