As you say, advancing the start levers to idle prematurely can result in a hot start. (The limitation is to achieve max motoring and minimum 20% N2).
Hot starts can also occur when the engine starters stop igniting before N2 reaches 56% (starter cutout speed). There would be fire in the chamber but not enough airflow so EGT would rise rapidly.
The current EEC version protects the engines against hot starts, wet starts, stalls and EGT start limit during ground starts. On EEC detection of impending hot start or stall, the EGT value will blink white and the EEC will automatically turn off the ignition and shut off fuel. This protection is only available during ground starts. During in-flight starts this protection is not active.
A wet start occurs if the EGT does not rise after the start lever is moved to idle. If the EEC detects a wet start, it will turn off the ignition and shut off fuel 15 seconds after start lever is moved to idle.
I believe there is no way to induce an abnormal start condition in MSFS. Obviously I have never tried this in the real airplane so I wouldn’t know what actually happens if you move the start levers to idle prematurely. I know in the full flight simulator the engines will start normally if you do it wrong. I believe to induce a hot start they have to activate the failure specifically in the instructor panel.