Forza Motorsport 7

Note that you DO NOT need sim steering. I have done it using using normal steering.

I got this today doing the mixed drag late on a weeknight 12 am EST (only 4 drivers on average in the lobby). Used the stock Hoonicorn and turned all assists off and to manual clutch (I forgot and left it on manual for my first attempt but realized the Hoonicorn was beast). I basically held and pushed when I redlined at 9, it wanted to struggle and shifting was off since I wasn't using the clutch. I came in 3rd the first heat because I was used to regular manual but came in first the next two easily even with dirty shifting.

Hope that helps others who may not have had success on the track or trying a private lobby.

After seeing all the other methods, which are doable, I have to post what worked for me.
You will need a specific car, an Alfa Romeo 33C Stradale (1968), which costs 900,000 Cr.
If you don't have it, just wait to own it at some point.
IMPORTANT: Rewind should be disabled BEFORE entering the Drag MP Lobby, since from there cannot be turned off (the option does not appear). Thanks to Morbid237 to pointing that out.
The idea is to go to Multiplayer -> Unlimited Drag Race
Pick that car and tune it for Drag racing (you can do on the lobby before starting the race), there are plenty of Drag Tunes so pick the first one, which is usually the most popular one.
The most common cars that can beat the Alfa 33C are the Hoonicorn, and the Plymouth FF, which both are DLC cars so if you have only the regular version without extras, you won't have access to them. If you go to the lobby and see any of the other players with those, just go back and try it another time. You will probably have a chance but it will be close and don't worth the trouble.
Then if you now have the Alfa 33C with the Drag tune, go to [Assists] and disable them all, set Normal Steering, Fuel and Tyre Damage, and gears Manual with Clutch.

Now you are with the Alfa 33C with Manual with Clutch, the idea is to accelerate, and then the RPM goes to the red zone (because it is over revving), press and
You will change gear up and after a few of them until 5th, you will win the race.
Drags have 3 races, you only need to win 1

I finally did this in regular multiplayer. The new Multiplayer 101 Hopper includes the Brickyard track in Indy. It's an easy track to drive without Assists. The trick is finding the right car and tune.

The dominant times are the 2016 or 1018 Honda Civic's with minimum aero, however, I managed to get this achievement in a 2014 Volkswagen Golf R with a very easy to drive grip tune. An AWD will beat a FWD or RWD to the first corner and if you are smooth you can keep the lead. That's what I did.

As others have stated, you do not need Simulation steering and can use Cosmetic damage. You must remember to use manual with clutch.