Start any app in the simulator (i.e a datafield) and log or display Activity.Info.currentLocationAccuracy.
Then in the simulator go to Settings > GPS Quality and change it.
Unfortunately it won't change the value in the activity info.
In order for it to take effect you first need to go to simulator: Simulation > Activity Data and start the simulation with the play button.
It is confusing, because everything else that I change in Settings menu (language, time format, units, etc) immediately takes effect.
SDK 7.4.3