On the other hand it’s possible that the entity who would run this is aware and can manipulate our minds, or rewind time.
The problem is that if we just assert that we live in a simulation, anything imaginable or, if you allow for the outside universe to have completely different laws of nature, anything unimaginable as well.
I’m not a proponent of any simulation theories at all (they’re fun to think about, though), but I’d imagine that just like in “ordinary” science, people are interested in only testing falsifiable theories about the kind of simulation that we could understand and retain knowledge about.
Assuming for example that time can be restarted to prevent an insightful experiment to happen won’t ever give any meaningful result to begin with. As a corollary it’s never possible to disprove “simulation”, as a fuzzy term, in general. Scientists can however assume a much more constrained simulation that is maybe closer to how we would do it, and construct experiments that at least allow us to refute whether the alleged simulation seems to have those simpler properties or not.
In this case, it seems their simple model does not hold, and the simulation might be different. There can still also be no simulation, but we can never be certain.
I want to dig for a better video but Wisecrack has a good upload on the topic: https://www.youtube.com/watch?v=EFtbwP4UuFM
of course Morrison takes us a much more...theological outcome, but yeah.