This makes me think of two very different things.

One is informational containment, ie how to run an AGI in a simulated environment that reveals nothing about the system it's simulated on; this is a technical challenge, and if interpreted very strictly (via algorithmic complexity arguments about how improbable our universe is likely to be in something like a Solomonoff prior), is very constraining.

The other is futurological simulation; here I think the notion of simulation is pointing at a tool, but the idea of using this tool is a very small part of the approach relative to formulating a model with the right sort of moving parts. The latter has been tried with various simple models (eg the thing in Ch 4); more work can be done, but justifying the models&priors will be difficult.