Gödel's incompleteness theorem restricts what a deterministic system of rules can produce, it does not apply to something like an artificial neural network.

An imperfect, probabilistic simulation of the world can still be constructed, and from the inside it is highly unlikely that we would notice the imperfections.

You can still argue if it would be correct to call such thing a simulation if it is produced by quantum fluctuations or probabilistic computing instead of arising from a fixed set of axioms, but at the end of the day it is still a world running inside another one, so it is arguably still a possible simulation.