Well it’s not so much about whether there is a line but what the probability distributions are and whether it continues to make sense to think that of all sentient beings the majority are likely simulated.
And while I personally get the argument you and the parent post make, I think it’s worthwhile highlighting that it’s likely not a simple matter of whether it’s possible and that the biases/utopianism that facilitate making that leap are also factors and worth making explicit.
Personally, I find it hard to conclude that a sufficiently advanced civilisation would necessarily be concerned with running so many simulations when there are probably a number of things they could spend time on that we can think of and many more we can’t because we’re not that advanced.