I have to admit I got it all wrong in the past. All the arguments that we might be living inside a simulation. The thing is not to explain why we are here or what created the universe. That still wouldn't make any sense.
But the whole point is the so called ancestor simulation scenario. The assumption is that we (or the ones running the simulation to be more exact) at some point reached the point where running such simulation is computationally possible. Assuming the human level curiosity such computational power would eventually be used to run some simulations of the past.
And nothing stops the computational power to increase further, to the point where such simulations could be run just for fun on any commodity handheld devices. Just like we run mobile games in our cellphones today. Eventually those simulation become so advanced they end up having recursive ancestor simulations of their own.
Against this premise, it's more than likely that we are, in fact, living inside one of such simulations. Odds are just so far out against us as there is endless amount of simulations and only the one true outer world somewhere out there, outside all these layers of recursive simulations.