So someone was able to construct a hard drive in mine craft, good.
For someone to have a working hard-drive of capacity N, the game itself needs to be running on a computer which has a hard drive of capacity N+1, the +1 is for storing the actual game itself.
We can similarly say to have a working cpu of capacity N, the game itself needs to be running on a computer which has a cpu capacity of N+1, the +1 for actually running the game itself.
If we were to assume that we live in a virtual world, then in order for us to create new artificial life inside of our virtual world, we would first need to construct a computer that is at-least as big as the computer we are already in.
Can you simulate a computer that is bigger and faster than the computer on which the simulation is running ? I would say no, hence we can never simulate artificial life in its truest form.
I am sure we can and will create artificial life but will it ever match what we ourselves live in ? I don’t think that so.