Does simulator time count as time in type?
Unfortunately, no.

135.225 - IFR: Takeoff, approach and landing minimums (e) requires:


  The MDA or DA/DH and visibility landing minimums prescribed in part 97
  of this chapter or in the operator's operations specifications are
  increased by 100 feet and 1⁄2 mile respectively, but not to exceed the
  ceiling and visibility minimums for that airport when used as an
  alternate airport, for each pilot in command of a turbine-powered
  airplane who has not served at least 100 hours as pilot in command in
  that type of airplane.


So this means that our question becomes:  Can a pilot log PIC time when "flying" a simulator?

The answer to this question comes from 61.51 - Pilot logbooks, where you will notice that none of the bold parts (marked by me) have been met in the situation that you describe.  Generally, PIC time requires you to be PIC of an aircraft, and does not provide for PIC time when in a simulator unless you are providing instruction:


  (e) Logging pilot-in-command flight time. 
  
  (1) A sport, recreational, private, commercial, or airline transport
  pilot may log pilot in command flight time for flights-
  
  (i) When the pilot is the sole manipulator of the controls of an
  aircraft for which the pilot is rated, or has sport pilot privileges
  for that category and class of aircraft, if the aircraft class rating
  is appropriate;
  
  (ii) When the pilot is the sole occupant in the aircraft;
  
  (iii) When the pilot, except for a holder of a sport or recreational
  pilot certificate, acts as pilot in command of an aircraft for
  which more than one pilot is required under the type certification of
  the aircraft or the regulations under which the flight is conducted;
  or
  
  (iv) When the pilot performs the duties of pilot in command while
  under the supervision of a qualified pilot in command provided—
  
  ...
  
  (2) If rated to act as pilot in command of the aircraft, an airline
  transport pilot may log all flight time while acting as pilot in
  command of an operation requiring an airline transport pilot
  certificate.
  
  (3) A certificated flight instructor may log pilot in command
  flight time for all flight time while serving as the authorized
  instructor in an operation if the instructor is rated to act as
  pilot in command of that aircraft.
  
  (4) A student pilot may log pilot-in-command time only when the
  student pilot—
  
  (i) Is the sole occupant of the aircraft or is performing the
  duties of pilot of command of an airship requiring more than one pilot
  flight crewmember;
  
  (ii) Has a solo flight endorsement as required under §61.87 of this
  part; and
  
  (iii) Is undergoing training for a pilot certificate or rating.