If you assume the existence of an omnipotent God, and you assume that he mandatorily collapses wavefunctions through observations (He may have the power to actually see wavefunctions without collapsing them), then yes, the universe's wavefunction would be collapsed (which it isn't, otherwise certain experiments would not work). Thus, either:
- There is no God
- If there is a God, he is not omnipotent
- If there is an omnipotent God, he should have the power to withhold the collapsing of a wavefunction (I.e, he should be able to observe stuff without having to collapse the wavefunction; thus observing the wavefunction itself)
- If none of the above are true, then quantum mechanics does not work.
With the absence of scientific evidence for any of these points, you can take your pick of the answers, though none would be scientifically correct till we get proof.