Just as you CANNOT put 20 ounces of water in a 16 ounce glass, You cannot have have something larger than the universe contained in the universe. It's a physical impossibility.
I would agree if the number of possible positions after 40 moves was a physical thing like atoms of hydrogen and oxygen, but it is not -- it is an abstract concept.
Similarly, the number of possible arrangements of any number of the atoms in the universe up to and including all of them is an abstract concept that vastly outnumbers the total number of atoms in the universe -- by your reasoning, is this an invalid concept?
Not only bigger, but given those estimates 10^41 times bigger. ~10^41 universes of atoms. That's 1 followed by 41 zeroes!