If the Universe is cyclic and recreated again and again and has the same outcome(and appparently has no beginning and end), simulation hypothesis have problems to explain why things that follow exactly the same tracks again and again can't be part of Universe as natural mechanism observable by enough developed brains and why there is such necessity for someone to create something that is natural. It also concentrates on humans, but there is nothing that prevents animals - at least for mammals to "remember or guess future". Or even things to "remember" their place, that humans can observe. Anecdotally, but some of the issues, that are discussed in regards human behaviour, were already present in old folk tales, that discuss exactly the same issues, that simulation hypothesis have about human behavior, as in those old folk tales it was claimed that humans initially knew their fate and behaved accordingly without any regards for others when their end came, so they were robbed of that full understanding of what is their fate.

There are legitimate and recent experiments that have been done to test the simulation hypothesis.

In my opinion, it's really not that far-fetched and the potential fact that we could be living in a simulated universe has no significant effect or consequences for humanity.