Surprised that the currently exponential overhead for simulating a quantum system is a distant second in commenter objections here. "Simulating the universe" in the holistic manner that I feel such a phrase entails would require at least clearing that bar (say, with a quantum computer? Or at a longer shot, showing BQP = P?), and that's before thinking about the status of quantum gravity.
Instead I'd take it as meaning something like, "any slice of physical phenomena there is to observe in the universe, we can simulate given reasonable resources to do so." So, put an imaginary box around some reasonably isolated plot of reality, pick your precision and your time scale, and you could replicate what happens in that space with a "reasonable" computational resource overhead. That's what elevates the quantum simulation overhead objection to number 1 in my mind.