ARFoundation 5 provides a new simulator in editor where you can navigate a simulated scene using wasd and the mouse. However, this doesn't seem to work in 2022.2.10f1/ ARFoundation 5.1.0pre3 in the Device Simulator view. Is this a bug or is there some option I need to enable?
This is a bug. I investigated last year, and it looks like the Device Simulator view currently does not receive input from the Input System. Use the Game view for now. (If your build target is set to iOS or Android, I recommend changing your Game view's aspect ratio from the default Free Aspect to a specific device aspect ratio)
While use Game view for now sounds like a good idea, it comes with its own issues. I for example have this issue when using Game View: https://issuetracker.unity3d.com/product/unity/issues/guid/UUM-30742 So for me I can't use Game view because UI Toolkit registers double clicks when I single click and I can't use Device Simulator because I can't move my view there. I currently have to switch between the two constantly and its very annoying.