Problem driving IPB065N15N3G MOSFET with HCPL-316J driver
V2 and the HCPL-316J don't have GND connection.
See picture below.  



You should better start cleaning up the schematic first.
Use nodes. Remove all wired connection to GND and replace them by short connection to the GND node. Cut the traces of the voltage sources V1, V2, etc. Give their positive terminal a node and use these nodes to make short connections to other components.
In the picture above, I showed the idea for voltage source V1.

PS. Please turn off the grid when posting a schematic.



VCC2 (w.r.t. to VE) does not exceed the UVLO Threshold  

In the schematic, VCC2 is only 5V and therefore the HCPL-316J will be in UVLO.
In the Notes on page 10 of the datasheet of HCPL-316J:


  
  15 V is the recommended minimum operating positive supply voltage (VCC2 - VE) to ensure adequate margin in excess of the maximum VUVLO+ threshold of 13.5 V. For High Level Output Voltage testing, VOH is measured with a dc load current. When driving capacitive loads, VOH will approach VCC as IOH approaches zero units.
  


The recommended voltage for (VCC2-VE) is between 15V and 30V. Vout will become about this voltage. 
DO NOTE that (most) mosfets have the absolute maximum rating VGS &lt; 20V.



I haven't gone into details with the datasheet, but I think this driver is specially designed to drive IGBT's. I think you'd better pick a different IC when driving mosfets.
Regarding simulation: I got better simulation results by shorting/disabling the Integrated Desaturation (VCE) Detection to ground.
BTW, You don't need V4, because it is only needed when negative gate drive is implemented.



Although it is not hurting the simulation, better also comply to the datasheet's Absolute Maximum Ratings:

Parameter           Symbol                   Min.    Max.
Input Pin Voltages  VIN+, VIN- and VRESET    -0.5    VCC1


So, change V1 to PULSE(0 5 0 12.5u 12.5u 0 25.0u)



WORKING SIMULATION
Note I did not use MUR1100. It takes ages on my PC to simulate with it. Moreover, I questioned before why you want to use this DESAT pin or actually even this IGBT driver. I got almost the same results by deleting this D1 and connecting the 100 ohm resistor to GND.
For clarity, I also removed almost all caps that are connected directly across a voltage source (except for C2) because in simulation these caps don't do anything. (But do add them on the real PCB!)
You should look at the diagram on page 3: that reveals why applying a negative voltage on VINN is useless; better connect it to GND. The same for the pulse source / positive triangular pulse source connected to VINP.
I connected a 1 Meg to LED1 in order to see the output of the internal  comparator.  For your PCB, the datasheet suggest to leave LED1 and LED2 unconnected.