Everything sounds so simple until we try to explain it.
If the emulation is contained inside the universe being emulated, do you think the emulated universe includes the emulation contained within it? Does the emulation now contain another emulation? If so, now many emulations?
If the emulation is contained inside the universe being emulated, do you think the emulated universe includes the emulation contained within it? Does the emulation now contain another emulation? If so, now many emulations?