This really isn't my field of expertise, but I can shed some light (pun intended?) on this problem.
Most of the time, we refer to "light" as the type of light human eyes can see. This is known as visible light. But, light itself can be said to encompass a very wide spectrum known as the electromagnetic spectrum. Our eyes can only see a very tiny fraction of this whole spectrum known as the visible spectrum.
While stars do emit light, not all of it is given off in the visible spectrum. In order words, when you gaze upon a star, you are not seeing all of the light that is being emitted from it. You are only seeing the visible part of the spectrum that is emitted. Smaller, red stars emit most of their light in the infrared spectrum, which our eyes cannot see. Larger, brighter, bluish stars emit more of their light in the ultraviolet spectrum and above, which our eyes also cannot see.
I believe that light does indeed equal energy. Energy can produce heat. However, the situation you have in your simulation is that a star with 700 times solar luminosity would emit a larger portion of its light in the ultraviolet spectrum. This light reaches the planet and heats it, but our human eyes can't see it, because it's not part of the visible spectrum. Being 700 times more luminous than the sun, a huge amount of energy is released. Therefore, we get a lot of heating happening from the ultraviolet light, but we don't see the planet being lit by that star because there's just not that much visible light for our eyes to perceive.
Just an additional note, luminosity is not how "bright" a star is. It is a measure of how much energy is being emitted from it. Not all of this energy is given off in the form of light we can see. 700 times solar luminosity is not 700 times as bright as the sun; it is 700 times more energy than the sun.
I hope this helps.