Several flaws with this line of thinking assuming that each simulation is creating a simulation with the exact same laws of physics as the original reality. If we follow the probability argument, there would be no reason as to why this would remain a constant throughout each simulation. A different approach one should consider is that the laws of physics set in our existence is vastly more defined and constricted than the first version. Going further in this theory, one can remove the boundaries of what is possible in terms of physics and the types and amount of resources in previous simulations.