This gets to one of the problems with simulation arguments. They tend, like Bostrom does, to just assume the simulated reality is the same as the reality it is simulated from, like the 'ancestor simulation' idea. In that context, there would be finite energy and finite entropy, so this nesting would not be possible.
But that need not be the case. Any unknowably different reality could be simulating ours, with us having no way to examine or access it. We may be a person dreaming of being a butterfly, or a butterfly dreaming we are a person, to paraphrase Zuangzhi. Or the case where, "some evil genius not less powerful than deceitful, has employed his whole energies in deceiving me", as Descartes put it. These are not in this case simulation argumentd, but scepticism about whether we can know anything. In terms of being useful in philosophy, rather than purely arbitrary speculation, this is pretty much limited to methodological scepticism like Descartes used, where we examine how we know what we take for granted ordinarily that we know.
I want to suggest a slightly different angle on nested realities. Nesting implies one is a subset of a more complete other reality. But there are a number of assumptions, like that the subreality can literally have no access to the supereality, but that implies vice versa the supereality can at most only observe not interact, or such interactions would provide evidence to the subreality about the supereality. So, if there is to-ing and fro-ing, are they really seperate? Can we categorically claim one more and one less 'real'?
There is an ancient Buddhist metaphor, Indra's Net, in which all the minds in the universe are pictured as jewels, each at the intersection point of a net. Each jewel contains the image in reflection of every other jewel. This is the intersubjective picture, replacing the idea of one objective reality, with the summation of interacting subjectivities, interacting and picturing each others perspective.
In a more modern metaphor, this can be described as a Peer2Peer simulation hypothesis. Like the internet, each node in the network connecting to all the other nodes, to share information. In this sense, one 'reality', one subjectivity, may have a more complex and sophisticated model of reality. Another with a simpler reality, like say a small child, might be described as having a reality 'nested' within that of adults and wider society. And such links generation to generation, can go on indefinitely, deepening and complexifying the model of the world, all while constituting aspects of the world to learn about.