This is not a very good article.

SF authors have explored these fascinating concepts without falling into such holes in logic: such as presuming that a technology capable of simulating an incomprehensible volume of intelligence was simultaneously too lazy to leverage that intelligence to not cut corners in the simulation.

That said, I do subscribe to the school that says we must conclude one of the following:

a) civilization in the abstract generally does not progress to the point of being able to simulate itself, or

b) we are the the first civilization ever, or

c) we are a simulation