I'd imagine the simulation would have some algorithm which would create new humans based on a multitude of variables; time of year, geolocation, political climate etc. etc and that would also be reset upon your 'death'. (edit) My interpretation of the theory presupposes that the simulation is...
I think it's a possibility but only because it reconciles my thoughts regarding the after-life. My brain cannot comprehend my non-existence. The idea that the lights switch off and there's nothing after death just doesn't sit right with me.
With that in mind I believe we're sort of reset; like...