This sounds a lot like the game played by the International Kriegsspiel Society (https://kriegsspiel.org/), which I think is worth noting in terms of other implementations of the same idea.
(Why do I not just say "This sounds a lot like Kriegsspiel?" Because there's so many different varieties of Kriegsspiel, not all of which work like this, so I'm pointing to a particular one that does.)
(Why do I not just say "This sounds a lot like Kriegsspiel?" Because there's so many different varieties of Kriegsspiel, not all of which work like this, so I'm pointing to a particular one that does.)