Yes, it's possible! Briefly speaking, connecting simulated device requires another Labview class named "SimulationManager" in your block diagram.
Among the example VIs downloaded from Thorlabs website, there is one VI named "Kinesis - Simulated Hardware.vi" in the folder "Simulator".
Instruction for connecting simulated devices is written its block diagram. You need to start with "SimulationManager" class in your block diagram and your simulated device's serial number while keep the Kinesis Simulator.exe application open.
After I included this class in the diagram, I have connected the simulated device in my Labview program.