On Earth I live in the U.S., but Hilda and a few others here have pretty much covered the major flaws of that and I have nothing original to add, so I'll just do Earth. I should probably explain that I think Earth isn't real and the planet we came from before going here and return to after Earth is our real home.
Things Wrong With Earth
-Peoples' age is defined by how many years they've been in this simulation, and not their actual soul. The same can be said about gender, although people have become more aware of that topic lately.
-Earth is considered "the real world"
-Some people actually have malicious intentions, and some other people don't realize that the intent to do harm is just as bad as actually doing it, even if the person doesn't follow through with it or is stopped before they get the chance
-Schools in general don't offer much for varying learning styles.
-During the time spent on Earth, there are permanent disorders, disabilities, illnesses, etc.
-There are germs.
-The method of giving birth makes no sense whatsoever (neither does menstruation).
-Basic human rights and decency needs to be fought for in many parts of Earth for some groups of people.
-People think anyone can be strong. Kids need adults and bigger kids to help with some activities and extra affection. They can't get through all difficulties on their own. (they will however always receive the help they need) This ties back to how people on Earth view age. Also the "starving children in Africa" mentality that doesn't acknowledge while people there are all strong, people in parts of Earth with better living conditions are all varying levels of inner power.
-Some people can get away with being rotten, and some people get punished for things they never did.
-People make these completely insane stories about things that don't exist outside a disturbed person's fantasies (yanderes, children being hurt or tortured, people being eaten etc.)
I'm sure I didn't manage to get even half of everything.