Multiconjugate adaptive optics (MCAO) systems have the potential to deliver diffraction-limited images over much larger fields of view than traditional single conjugate adaptive optics systems. In MCAO, the high altitude deformable mirrors (DMs) cause a distortion of the pupil plane and lead to a dynamic misregistration between the DM actuators and the wavefront sensors (WFSs). The problem is much more acute for solar astronomy than for night-time observations due to the higher spatial sampling of the WFSs and DMs, and the fact that the science observations are often made through stronger turbulence and at lower elevations. The dynamic misregistration limits the quality of the correction provided by solar MCAO systems. In this paper, we present PropAO, the first AO simulation tool (to our knowledge) to model the effect of pupil distortion. It takes advantage of the Python implementation of the optical propagation library PROPER. PropAO uses Fresnel propagation to propagate the amplitude and phase of an incoming wave through the atmosphere and the MCAO system. The resulting wavefront is analyzed by the WFSs and also used to evaluate the corrected image quality. We are able to reproduce the problem of pupil distortion and test novel non-linear reconstruction strategies that take the distortion into account. PropAO is shown to be an essential tool to study the behavior of the wavefront reconstruction and control for the European Solar Telescope.