There's also the statistical fallacy: the notion that because something *could* exist, therefore we should assume that it does.
Specifically in this case, a highly intelligent being *could* create an extremely-realistic simulation of life. But the amount of energy, cost, time, complexity, etc. limit the number of simulations that reasonably could be created. So assuming that billions and billions of simulations would be created (just because they could) is a fallacy, and hence the idea that therefore our 'likelihood' of being a simulation is large should also be rejected.