Thanks for your replies. I have begun to understand entropy a bit more since I posed this question. Stephen himself gives good explanation of entropy in his science Q&A (for 33 year old kids like me) which I will link here which helped me understand that my initial idea was too simplistic - https://youtu.be/1ihCUeCtLCk?t=1519 .
Clearly reversibility and macro vs. micro states are important concepts here. That entropy should always increase in the model is not necessarily true if the level of analysis is down at the level of the atoms of space, not up at the level of particles. So I think to understand the 2nd law of thermodynamics we may have to wait to first understand how topological obstructions result in mass particles.
Now I have a new question which is why should mass particles made of topological obstructions attract to each other in what we call gravity? My initial guess is that it must have to do with how topological obstructions first persist (which is itself perhaps anti-entropic) and second how they both individually and collectively increase the local dimensionality of space relative to the vacuum.
