Doesn't this machine have a set of ways to generate negative utility (It might feel unpleasant when using up resources for example, as a way to prevent a scenario where the goal of 32 paperclips becomes impossible)? With fewer and fewer ways to generate utility as the diminishing returns pile on, the machine will either have to terminate itself (to avoid a life of suffering), or seek to counter the negative generators (if suicide=massive utility penalty).

If there's only one way to generate utility and no way to lose it however, that's going to lead to the behavior of an addicted wirehead.