Can a small army of Simulacrum cast True Polymorph on each other to create real live creatures?
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That would be fine...Sure, but IMO they would lose all their class levels.
That would be fine...
Just looking for a way that an Epic villain necromancer could create mundane duplicates over a period of 100s of years
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Not in my campaign, as I don't allow simulacrums to have their own simulacrums.
That said, I see no reason why you couldn't True Polymorph a simulacrum, but that wouldn't make it any more real than it already is. In other words, it would still be susceptible to being dispelled. While polymorphed, however, the simulacrum would be able to function as a living creature in all respects (assuming you polymorphed it into a living creature), including recovering the hit points of its assumed form. However, it would still not be able to heal its simulacrum hp, which are separate.
If you turn them into a shield guardian you can make them immune to dispel.

(Dungeons & Dragons)
Rulebook featuring "high magic" options, including a host of new spells.