They got the Kobayashi Maru scenario completely wrong in this movie. Even Kirk's attitude. The original Kirk wanted to WIN the unbeatable scenario. He wanted to find the solution to the problem. He didn't want to make fun of it.
There is nothing to make a comparison to, so how did they get it wrong?
This is all we know from "The Wrath of Khan":
1.) He cheated
The rest is just fanon or something derived from a book. Since what is on screen is official then we now know how alternate timeline Kirk beat the test.
Thus it's immediately obvious to everyone that he's cheating when he doesn't die or when anything not originally programmed in happens.
Well, not THAT
Adviser: How did that guy beat your test?
Spock: I do not know.
Hmm. Kirk is seen doing nothing, the lights go off for some reason that no one really knows why, than all of a sudden the klingon ships are disabled and go down with one shot. Why would their first impression be that he legitimately beat the test?
No one said that he "legitimately" did. But the test was beaten, and it threw the superiors completely off guard.
Did IQs decrease over the centuries where we can't fathom the possibility of a system error? Cause that's what it looked like to me.
Not when Kirk is gloating about it and it's obvious that he's making a mockery of the simulation. This was all in that scene.