Your deduction is faulty even though your conclusion is doubtlessly correct. The argument that there is no utility in running the simulation one more time requires that the utility of running an exact repetition is lower the second time and that there is an alternative course of action that offers more utility. Neither is necessarily a given for a completely unknown utility function.
I agree if the utility function was unknown and arbitrary. But an AI that has already done 3^^^3 simulations and believes it then derives further utility from doing 3^^^3+1 simulations while sending (for the 3^^^3+1th time) an avatar to influence the entities it is simulating through intimidation and fear while offering no rationale for those fears and to a website inhabited by individuals attempting to be ever more rational does not have an unknown and arbitrary utility function.
I don't think there is any reasonable utility function that is consistent ...
This is our monthly thread for collecting arbitrarily contrived scenarios in which somebody gets tortured for 3^^^^^3 years, or an infinite number of people experience an infinite amount of sorrow, or a baby gets eaten by a shark, etc. and which might be handy to link to in one of our discussions. As everyone knows, this is the most rational and non-obnoxious way to think about incentives and disincentives.