Susskind says that all laws of mechanics are reversible and any valid mechanic law most be reversible: you can always determine the previous state of any physically valid system. However, the simplest operations in computation, reset as well as the binary AND and OR operators, are irreversible. You may say that "this is only a virtual simulation" and everything is reversible in reality. However, because of the dissipation, almost all processes in the world are irreversible. So, despite irreversibility is completely forbidden, everything seems to be irreversible and entropy only increases. I want to understand how this contradiction is resolved (at least in one case).
I also do not understand why do you represent a system configuration space by a box. You say that the state is a point in that box and its trajectory represents the state evolution. However, reversibility requirement demands that the trajectories do not intersect. This means there must be only one trajectory. So, you should rearrange all the dots of the configuration box into a line (it might be a segmented into unconnected circles). However, that might be another question.