I notice that all of the parts internal to your seven segment decoder have 74xx part numbers. The other thing I notice is that there is a 220 Ω in series with each of the decoder outputs.
Your 7-seg display may not have current limiting resistors as part of it. Put a 220 Ω resistor in series with each input. I don't know how your simulator reacts if a logic gate attempts to drive a diode with no resistor.
Some simulators automatically insert D/A and A/D blocks at the junction of digital and analog components. It's possible that in your two-input circuit this isn't happening.
You might also try replacing your logic gates with the same 74xxN parts that the decoder uses.
Your 7-seg display may not have current limiting resistors as part of it. Put a 220 Ω resistor in series with each input. I don't know how your simulator reacts if a logic gate attempts to drive a diode with no resistor.
Some simulators automatically insert D/A and A/D blocks at the junction of digital and analog components. It's possible that in your two-input circuit this isn't happening.
You might also try replacing your logic gates with the same 74xxN parts that the decoder uses.