I agree. Compare this with computation of a factorial function. You start with knowing that the function is f(n)=if(n>1) n*f(n-1) else 1. Then you find out that f(1)=1, then that f(2)=2, etc. With each step, you are not taking new data out of environment, you are working from what you already have, simply juggling the numbers, but you gain new information.

That's an invalid comparison. That's a mathematical operation that doesn't involve information loss, and hence has nothing to do with this discussion.