Why on Earth someone thinks a possible simulated Universe is not real beats me...
Is the same kind of poor argument that says colours are not real because they are a product of our perception on the wave length of the light spectrum...people do indeed have trouble wording Set Theory schema!
A dream if it was dreamed is a real dream first or second order realities are irrelevant for "realness"...
Just because when I woke up I saw that I was not dying like I thought in the dream it doesn't mean that in the subset the dream was I wasn't indeed dying...one domain does not trump the realness of the other just because my mind is programmed by evolution to assert "realness" to survival schema!
Second point, you assume free will and control from the POV of a creator of Realities but that is just an assumption and without merit as any final properties of Reality do not create themselves out of nothingness and nothingness is a contradiction in terms as there is nothing to nothingness, thus Reality with capital R means all domains stand on equal footing without any actual control from upper or lower domains of "realness"...therefore the "creator, the "Mind" is just as fated to act the way it must as any other subset minds in a lower domain of simulated reality that the Creator believes to have created out of his own "free will".
A fractal sequence of minds does not change the realness of the whole power set because some stand before others...moreover the very concept of before and after is linear thinking about Time and ditches the very compelling argument on the block Universe for no good reason. The very idea of causality is an artefact of how human mind or any biological beings perceive phenomena as the Noumena is a dead blunt brut fact where everything coexists!