In the proof of the Time Hierarchy Theorem, Arora and Barak writes:
Consider the following Turing Machine $D$: “On input $x$, run for $|x|^{1.4}$ steps the Universal TM $U$ of Theorem 1.6 to simulate the execution of $M_x$ on $x$. If $M_x$ outputs an answer in this time, namely, $M_x(x)\in \{0,1\}$ then output the opposite answer (i.e., output $1−M_x(x)$). Else output $0$.” Here $M_x$ is the machine represented by the string $x$.
What if we give the encoding of $D$ as input to $D$? Then $D$ will accept exactly when $D$ will reject. So such a $D$ cannot even exist. Am I missing something?