Number of dimension doesn't matter they both include space/time. In my theory space time is trying to compress them.
You would still live in a physical world of 3 dimension or more that was existing inside the 4th dimension of space/time.
Space is considered flat, even though everything around us is not. Large masses disrupt space causing gravity. Neither of these statements is different whether space/time is something we sit on or some thing we sit in. I would argue that being in space/time like a membrane makes more sense.
The big bang was caused after the collapse of the last universe, once all the energy is gone from the bb the membrane forces tries to force all the matter into one dimension at some point the Multi dimensional energy explodes against the one dimensional force causing the bb again.
I think you are misunderstanding the term space is flat. That does not mean 2 dimensional but that it does not curve in 3 dimensions. It is measured as flat to an accuracy of 5 decimal places* in every direction at vario points on the CMB to a triangle with the 3rd point on earth.
Also energy cannot go because the universe is a closed system, thermodynamics prevents this.
There is also the theory that the total amount of energy (positive energy and negative energy) cancels out to give a total of zero.
And entropy will not allow a cyclic universe. At maximum entropy heat death occurs where each particle of the universe is too far from any other particle to be gravitationally attracted. The particles continue to move away from each other for ever
* It could mean space curves at 6 or more decimal places, that is unknown
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