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Chances are that we’re not in a simulation, but you’re right that for our universe to be simulated, the host universe would need fundamentally different physics.
Even then, I feel like you’re underestimating the scale of the universe. Dwarf Fortress is laughably simple compared to a real universe. It’s a toy. You’d need something more than a couple extra dimensions for our universe to be at all comparable to that.
To be completely honest, dwarf fortress is way more complex then tic-tac-toe.
Compared to a universe, they’re equally complex.
Tic tac toe is on the order of 10^2 bytes.
The Dwarf Fortress install is 10^8.
The number of particles in our universe? 10^80