Can you name this sci fi film that is similar to The Matrix?

In this movie there are scientists who (spoilers ahead)

...are creating a simulation. One scientist starts seeing odd looking characters but no one else sees them. He asks around and more and more characters are missing or don't know about the characters in the story he knows about.

He finds out that he is part of a simulation. He finds out that the characters only he remembers have been deleted. He also finds out that there are characters from his own simulation that have broken free of his simulation and are in his world.

Feel free to fix the title and put spoiler tags around the spoiler part. I'm not sure why there isn't a spoiler button in this editor.

Hints: I remember this being an older film (70's?); it might have been foreign film possibly with subtitles (not hollywood); it might have been part of the Criterion collection; I'm pretty sure I streamed it from Hulu. Sorry, I can't remember more details.