It appears that most views expressed in this thread have an element of truth regarding how the moon should look in real life.
Assuming the Moon’s orbital plane is above the equator, and ignoring the Earth’s tilt …
If you are very near the north pole, the moon’s north pole will be “up” and the moon itself will be to your south. The moon stays close to the horizon.
If you are very near the south pole, the moon’s north pole will be “down” and the moon itself will be to your north. The moon stays close to the horizon.
If you are very near the equator, in either hemisphere, and the time is near moonrise, the moon’s north pole will point to your left (North) and the Moon will be to your East. The moon will pass over your zenith. At the zenith the Moon’s North pole will point to your north.
If you are very near the equator, in either hemisphere, and the time is near moonset, the moon’s north pole will point to your right (North) and the Moon will be to your West. The moon will pass over your zenith. At the zenith the Moon’s North pole will point to your north.
As you move further from the “very near”, then the moon starts to make arcs and it’s north pole will appear to rotate as it progresses from Moonrise to Moonset. The height of the arc and degree of rotation depends on your relative latitude.
Hopefully, we can all agree that the moon doesn’t suddenly flip from one orientation to another as the observer magically moves that infinitessimal distance from being North of the Equator to South of it.
As mentioned by @anon69344611, Can the Moon be upside down? | The Planetary Society has a good discussion that describes both polar and equatorial situations. Unfortunately very few of us live at the Poles and the mid-latitudes where we do tend to live are even more complex than the equator.
The question remains (and I have not checked), does MSFS work as described in all situations described here?