In the latest episode of Lex Fridman’s Artificial Intelligence Podcast Sean Carroll argued against the simulated universe hypothesis but I found his issues wanting.
He asked, why would one render an entire universe? This is easily answered if you consider the fact that a posthuman civilisation would want to create as accurate an ancestral simulation as possible for the sake of useful data acquisition.
He also posited that if most simulations would be of the lowest resolution possible due to recursion we would expect to be in something like a 16-bit world. The issue with this is that going from known computer architecture, a planet sized computer is reasonably estimated to be powerful enough to render millions of high-resolution simulations before recursion is even a consideration. Probabilistically this would still mean that living within a high resolution simulation is more likely than living in the non-simulated universe.