The universe (U) itself would be the prediction machine.
To be fair, there would be no definition of "circular" without the universe.
The reality we - or habitants from other universes or other domensions - can measure seems to be some kind of "Fractal collapsing" at the dimension/universe that the "measurer" is located.
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Kind of related:
Dostoiévsk, in his book notes from underground proposes an interesting problem.
I paraphrase it below:
What would you do if you receive from god himself a manuscript of the actions (down to the minimum possible dt) that will maximize your "satisfaction function" considering all your life?
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Rick and Morty also explored this using another analogy:
Psychologists are like horses in a caroussel trying to understand it's mechanism. They'll do their best, but in the end won't help much and feel terrified.
The problem is that any universe one starts predicting could look an indefinitely nested set of conditional distributions.
So your system could be going along learning and predicting when suddenly things changed and it would have to start all over. It would have some mechanism for pivoting at that point but of course that would less than perfect. So there are inherent limits if you talk arbitrary universe.