It doesn't really change the fact that quite a few militaries license "MCS", the military version of the simulator for training purposes (and it probably funds DCS development as a side project).
You could even see it now in photos with Ukranian pilots, most likely for F-16 cockpit familiarization.
Remember that pilots spend quite a bit of time practicing on printed out posters of cockpits and DCS is quite better than that ;)
For Arma it's VBS, but the games company (Bohemia Interactive) and the simulator company (Bohemia Interactive Simulations) have been seperate for quite some time, so VBS is based on older Arma titles.
IIRC the PLA actually used modded Arma 3 for training.