Captivate has always been famous for the way it handles software simulations. Although you now also have Video Demo, which is better for a pure demo, the Training and Assessment mode work great. Problem is that you only used Demo miode.
If you want to have a real training simulation, when starting the recording of the sim you need to change to Training or Assessment mode. You kept to the less useful Demo mode. You can even record once and have the three modes in one session. That is good way for a newbie to see the difference, to discover the use of interactive objects and the timeline.
In Demo mode you get the captions, in Training mode you'll only get the Hint message, in Assessment mode you will not get anything. Each slide will be paused by an 'interactive object': either a click box, because the learner needs to click somewhere, or a Text Entry Box because he needs to type in a text. You will easily see the 'pausing point' in the Timeline panel.
Next time when creating a software sim: check the three radiobuttons (Demo, Training, Assessment) in the Software Simulations dialog box where you identify the application or window to be recorded. You'll end up with three files in three tabs of the application (MDI means Multiple Display Interface) which you can compare and explore. Eventually you can copy/paste slides from one file to another one. In any basic training which includes sims, I start by creating a global file 'Show me, Let me Try and Test me' from those three files. You will only have to add a dashboard, to navigate to each of the three workflows.