The plot is a spoof off of the Codename: Kids Next Door episode, "Operation: U.T.O.P.I.A." where both Ben and Number 1 are:
virtually living their perfect days;
not figuring it out but do thanks to family and friends;
figuring out that it's virtual, take advantage of it and manage to wake up from; Ben 10, surgical operation, and; Kids Next Door, a test on the Happy Headband.