This idea has been formalized: https://www.simulation-argument.com/
Going further back to the 1600's, Descartes' idea of an evil demon deceiving one's mind with a perfect, fake reality made me think often of simulations in my undergrad philosophy classes
The idea is great, it was a wonderful narrative to run my life for a while, but eventually, the more I learned, the more impractical using full atomistic simulations seem for solving any problem. It seems more likely we can train far more efficient networks that encapsulate all the salient rules of folding in a much smaller space, and use far less CPU time to produce useful results.
It’s maddening :)
I'm also more in the camp of "quantum effects making the universe non-determinstic." It's a nicer way to live.
However, most importantly, we simply have no experimental data around any of this for me to decide. Instead I enjoy my subjective life with apparent free will, regardless of how the machinery of the actual implementation works.