Earlier quoted context omitted.
It doesn't prevent simulating A universe. You can then compute a difference between the simulated past state and real past state based on (partial) information about the past state. Then you go back and iterate again, eventually improving the accuracy of simulation until there is no distinguishable difference between simulated state and real past state. The simulation might end up being not a perfect copy, but it wou…
If you have a way to find discrepancies between a simulation and reality, why do you need the simulation anymore? I don't buy it. Even simulating just the earth and its environs would probably require a computer as big as a galaxy worth of matter. There's just no conceivable payback that could ever be worth the costs.
Yes, simulating Earth to sufficient precision might require resources of the Type III civilization. However, if something can be done, why shouldn't it be done?
The payback is twofold, actually:
First, you can get provide the meaningful afterlife to your ancestors.
Secondly, once you have hardware and software to simulate a virtual universe, you can create a multitude of them, with different properties and qualities. Think of the same logic behind splitting the physical computer into virtual machines.