This is one of the most ambiguous sequences in the film. As you said, this happens right before the doppelganger James enters the film. Since the basic theme of "The Double" is about the search for identity, with Simon being completely disconnected from the world he lives in, and any conscious sense of himself (the other characters, except Hannah, seem to not worry about their lives, not including, of course, the ones jumping off of buildings). It seems to me that Simon's bursting out with "This is not me sir" could be the first external cracking of his personality, the beginnings of him splitting into two identities - it's kind of like a foreshadowing of "the shadow", who soon appears as James. This is the beginning of the process of Simon attempting, unconsciously, to become "unique" (as stated at the end of the film). This is how it seemed to me, but I'm sure it can be interpreted differently by others. One of the things about a film like this is that it can be seen in as many different ways as there are different viewers.
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