my comment said that I don't believe "physical bits" exist, or at least not as physical bits, so you using the term physical bits is ignoring what I said. When you and I meet and shake hands, we don't actually touch, rather our electrons repel each other, quite firmly. I'm saying that they don't need to be physical to do that.
I'm saying "we live in a simulation", except it's not (necessarily) a simulation, all we know is that it's all there is that we know about.