Simulation hypothesis not simulation theory.
A hypothesis is an attempt to explain phenomena. It is essentially a guess used to understand and/or predict something. A theory is the result of testing a hypothesis and developing an explanation that is assumed to be true about something. A hypothesis or several hypotheses need be verified before it/they can become part of a theory. The simulation hypothesis has never been tested and many believe such a test to be impossible. At least that is true of simulation hypothesis variant 1 or SH1 which is the most common and posits that the universe and everything within it, including ourselves, is a simulation. Other variants may be possible to test.
For me the simulation hypothesis fails because it is too strong of a hypothesis. It suffers from what I call the too good to be true problem (tgtbT). Basically tgtbT says that SH1 is extremely unlikely because in SH1 it is way too easy to account for any aspect of how or why the universe is the way it is and how or why we are the way we are. Essentially it is too strong of a hypothesis. Wonder why your mom died of cancer? The simulators intentionally wrote and randomly distributed defective code into the source program that they knew would express as disease in people in order to observe how we reacted or to test our response to pain and suffering. Any question we can think of we can dream up an answer from some aspect of the simulation hypothesis. The only limits are those of the imagination.
Don’t forget to go to church..