LCD 16x2 can't display
I don't see much in the way of decoupling on that board, which simulators generally don't care about, but real implementations do.... 

Is the micro even running? You could write a simple program to toggle a pin and stick a scope probe on it to see if the processor is working? It is generally worth hanging a few LEDs on some spare pins because it makes early bring up very much easier. 

Those LCD modules are often quite picky about timing, especially during the setup phase, read the datasheet carefully and make sure your software meets the described timing. 

Simulators are somewhat useful for telling you that something will NOT work, but they have very limited value in telling you something will unless you know exactly what you are doing to start with.