I stand by I everything I've typed up until this point.
And i'm sitting down by everything that i've typed.
If this world is a sim or a biological computer, its running some awfully strange software judging by how the individual computing elements (people) act.
That would be an AI issue, correct?
It is perfectly possible for people and civilizations to make absolutely enormous advances in technology in short periods of time. See the Industrial revolution and compare life in 1800 to life in 2000. We dont even need that big a date range. Compare 1950 to 2000 compare 1900 to 1950.
Not comparable. Living as animals in caves with primitive tools to building cities with culture, advanced math and incredible city-building skills?
Newly evolved creatures and plants are all around us. Just look at dogs and cats horses and sheep and catle, wheat, corn etc (and you will see some examples there of faulty evolution (predispositions to various diseases, joint troubles etc) that is kept active through human effort and intervention instead of being discarded like it would naturally be. We even make the same mistake with our own kids, plenty with abnormalities grow up due to our intervention and pass faulty genes on when nature would have removed them from the gene pool by ensuring they died/were killed long before they could breed).
What you describe is not evolution. More like variety already present in the species and devolution; and of course genetic engineering.