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He is integral to the Zigerions's plan of tricking Rick Sanchez into revealing the formula for Concentrated Dark Matter. He assists Rick in all of his plans to escape the simulation, likely to try and lull Rick into a false sense of security to reveal the formula.
Simulation Morty is similar to Morty Smith, however there are a few differences. This Morty is more willing to go along with Rick, as proven when he and Rick have a playful fight with the crystals they are gathering and Simulation Morty didn't question it. The differences, along with other flaws in the simulation, lead to Rick figuring out how many levels of simulation he was in.