This is no such advancement for AI research. This only provides the possibility of typechecking your AI, which is neither necessary nor sufficient for self-optimizing AI programs.
I like how you made this comment, and then emailed me the link to the article, asking whether it actually represents something for self-modifying systems.
Now, as to whether this actually represents an advance... let's go read the LtU thread. My guess is that the answer is, "this is an advancement for self-modifying reasoning systems iff we can take System U as a logic in which some subset of programs prove things in the Prop type, and those Prop-typed programs always terminate."
However, System U is not strongly normalizing and is inconsistent as a logic.
So, no.
Self-Representation in Girard’s System U, by Matt Brown and Jens Palsberg: