Their findings, published in the Journal of Holography Applications in Physics, go beyond simply suggesting that we’re not living in a simulated world like The Matrix. They prove something far more profound: the universe is built on a type of understanding that exists beyond the reach of any algorithm.
The short reply to that is that it’s turtles all the way down. The slightly longer reply is that you’re making assumptions about how energy works in a system that you’re recognizing is not the same as our system. The even longer to reply is that if you’re hypothesizing a system then neither looks nor functions, anything like our current system, then our current language simply cannot describe it properly and therefore we have no good way to speculate about how it would or wouldn’t work.
So, if the higher level universe works by magic, then the theory is fine.
Sure, I’m making assumptions that any universe simulating our own would have finite energy and resources. Also that they would make a simulation that is at least close to their own (making theirs close to ours). Those seem like reasonable assumptions to make, otherwise we might as well just say that our universe is a pocket dimension made by magic and the whole thing becomes absurd pretty quick.
As they say, sufficiently advanced technology is indistinguishable from magic.