It's a bit of an interesting legal question IMO. If it's illegal to perform bestiality, that clearly doesn't make it illegal to simulate it, you would need a separate law or clause to cover that. If it's illegal to record bestiality, same thing - simply having the code on your computer to animate characters fucking is not a recording, so if she doesn't have screen-captured footage she should be in the clear.

My IANAL opinion is that if the cops don't find video evidence (ie obscene pornography), and didn't catch her in the act of running the simulation (assuming that making such a simulation is also illegal), then they have no case. How can you prove that code on a computer was used for an illegal purpose if there's no evidence of the alleged illegal act being performed? Perhaps an "intent to ___" law could be invoked instead, but my gut tells me that there's no law making "intent to use SexLab" illegal.

(but of course this is reddit so I also assume this story is fake)