Azathoth wants you to maximize your number of descendants; if you fail to have descendants, Azathoth will try not to have created you.

But this seems merely false. Azathoth just creates descendants whose ancestors reproduced. Azathoth isn't exerting any sort of foresight as to whether you reproduce. I can't figure out who or what you're trying to trade with. Not having children simply does not make you retroactively less likely to have existed.

I suppose you could be in a Newcomblike situation with your parents making a similar decision to have birthed you. I don't see how you could be in one with respect to Azathoth/evolution. It's not modeling you, it doesn't contain a computation similar to you, there is no logical update on what it does after you know your own decision.