This whole argument is meaningless because the term Simulation isn't well defined. In the narrowest sense, you could define simulation as "human-like creatures

This whole argument is meaningless because the term Simulation isn't well defined. In the narrowest sense, you could define simulation as "human-like creatures running computer-like machines that we're part of, just like the Matrix". In the broadest sense you can define simulation as "The universe follows a set of fixed physical laws, and we are part of that" While the former is just ridiculous, the latter is pretty plausible. When people are answering this question they can imagine any definition of simulation they like.