is most likely to be the cause of a loss of all human value in the universe
Change to “would be most likely to be the cause of a loss of all human value in the universe unless things are done to prevent it” or similar to avoid fatalism.
If you didn’t explicitly told it to do so, why would it?
Because you told it to improve its general intelligence, assuming “If you wanted to apply this potential to improve your template,” means that your desire impelled you to to tell the machine to try and improve its template.
Change to “would be most likely to be the cause of a loss of all human value in the universe unless things are done to prevent it” or similar to avoid fatalism.
Because you told it to improve its general intelligence, assuming “If you wanted to apply this potential to improve your template,” means that your desire impelled you to to tell the machine to try and improve its template.