It is not true for all simply connected $X$. A counterexample will be given later.
You are right, $S^1$ is a strong deformation of $\mathbb C^*$, thus your statement is equivalent to
If $X$ is simply connected, then every continuous function $f:X \to S^1$ is homotopic to a constant function.
But let us ignore this. You know that $\exp : \mathbb C \to \mathbb C^*$ is a universal cover. Therefore we can apply the well-known lifting theorem for covering maps - but only under the additional assumption that $X$ is locally path connected. In that case we get
- If $X$ is simply connected and locally path connected, each $f : X \to \mathbb C^*$ has a lift $\tilde f : X \to \mathbb C$ (i.e. $\exp \circ \tilde f = f$).
Since $\mathbb C$ is contractible, $\tilde f$ is homotopic to a constant function, and therefore the same is true for $f = \exp \circ \tilde f$.
Let us now give the promised counterexample.
The Warsaw circle is a simply connected compact subset of $\mathbb C^*$. See for example To show that Warsaw circle is simply connected. Let us choose a copy $W \subset \mathbb C$ of the Warsaw circle containg $0$ in its interior. We may assume that the line segment $L = \{-1 + iy \mid 1 \le y \le 3 \}$ is the subset of $W$ where the oscillating $\sin$-curve part accumulates.
We claim that the inclusion $i : W \hookrightarrow \mathbb C^*$ is not homotopic to a constant function.
Assume to the contrary that there is a homotopy $H : W \times I \to \mathbb C^*$ such that $H_0 = i$ and $H_1$ is a constant function with value $c \in \mathbb C^*$.
By the Tietze extension theorem the map
$$G : \bar W = W \times I \cup \mathbb C \times \{1\} \to \mathbb C, G(z,t) = \begin{cases} H(z,t) & z \in W \\ c & t = 1 \end{cases}$$
has a continuous extension $K : \mathbb C \times I \to \mathbb C$ (extend the two coordinate functions $\bar W \to \mathbb R$ of $G$ to get $K$). The set $U = K^{-1}(\mathbb C^*)$ is an open neigborhood of $\bar W$ in $\mathbb C \times I$. By the tube lemma we find an open neighborhood $V$ of $W$ in $\mathbb C$ such that $V \times I \subset U$. Then $j = K_0 \mid_V : V \to \mathbb C^*$ is a continuous extension of $i$ which is homotopic in $\mathbb C^*$ to the constant map with value $c$.
$V$ contains an open disk $B_r(z_0)$ with center $z_0 = -1 + i$ and radius $r$ which is mapped by $j$ into the set open disk $B_1(z_0) \subset \mathbb C^*$. Pick a point of the form $z_1 = a + i \in W$ such that $-1 < a < -1 +r$. Then the line segment $L'$ connecting $z_0$ and $z_1$ is contained in $V$. Remove $L$ and the part of the oscillating $\sin$-curve between $L$ and the vertical line through $a$ and insert $L'$ into this "gap". This gives a compact subspace $W' \subset U$ which is a topogical copy of $S^1$. Clearly the map $i' = j \mid_{W'} : W' \to \mathbb C^*$ is is homotopic in $\mathbb C^*$ to the constant map with value $c$.
Take a homeomorphism $h : S^1 \to W'$ by travelling counterclockwise around $W'$. Then $\phi = r \circ i' \circ h : S^1 \to S^1$ is homotopic to a constant map, where $r : \mathbb C^* \to S^1$ denotes the standard retraction. But by construction $\phi$ is homotopic to the identity which gives a contradiction.