While simulator time can be counted toward a certificate or rating, as spelled out in the regulation pertinent to a particular level of certification...it's not flight time. Simulator time doesn't meet the definition of flight time, and shouldn't be logged as flight time, nor is there any provision in the regulation to log it as flight time.
If you need 1,500 hours of flight time, but have 1475 yours of flight time and 25 hours of creditable simulator time, then you can show 1475 hours of flight time and 25 hours of simulator time. Not 1,500 hours of flight time.
The FAA doesn't care if your instrument experience was in a simulator, in actual isntrument conditions, or simulated instrument conditions. You can log it as dual received if you like, for the simulator portion. I don't. Any simulator time for me shows up as only as simulator time; it's not logged in any other column; the columns in my log use dual plus PIC plus SIC to equal total time.
Simulator time isn't hood time (simulated instrument). It's simulator or flight training device time (FTD). According to 14 CFR 61.51(g), you may only log instrument time only for that flight time when you operate the aircraft solely by reference to instruments under actual or simulated instrument flight conditions, and a flight instructor may only log instrument time when conducting instrument flight instruction in actual instrument flight conditions.
If you need to show that sim time as part of the requirements to meet the ATP, then on your form 8710, list the 1475 hours under total time, and the 25 hours as instruction received in the simulator portion of the Record of Pilot Time. This isn't flight time, and shouldn't be included there that way...it's simulator time, and when considered on the 8710 (application for Airman Certificate or Rating), it adds to the total 1,500 hours. The examiner should know this.
The instructions for the form state: "The minimum pilot experience required by the appropriate regulation must be entered. It is recommended, however, that ALL pilot time be entered. If decimal points are used, be sure they are legible. Night flying must be entered when required. You should fill in the blocks that apply and ignore the blocks that do not. Second In Command “SIC” time used may be entered in the appropriate blocks. Flight Simulator, Flight Training Device and PCATD time may be entered in the boxes provided. Total, Instruction received, and Instrument Time should be entered in the top, middle, or bottom of the boxes provided as appropriate."
For the ATP, up to 100 hours of sim time may be counted toward the total requirements, and up to 50 hours of sim time may be counted toward the isntrument time requirements.