This alternate conspiracy seems way more farfetched to me (why would US intelligence need such any such event to get an agent into China?), but if someone believed that it should be given a non-negligible prior, then they should revise my assumption that
> P(outbreak in 14km radius | virus not from WIV) = 1/3,000
I.e. their revised value should be at least as large as their prior for the alternate conspiracy.
What part of the argument are you disputing exactly? Are you claiming that applying Bayes' theorem in this way is somehow invalid, or are you just taking issue with the assumption quoted above?