But it does not understand anything here, see my other comment. It completely dodges the question and answers "It's funny because you told me it's a joke and jokes are funny and have a punchline in the end."
But, like you point out, it fails to grasp the subversion.
So, that's neither here, nor there - except if you believe that the parent's argument was that ChatGPT doesn't have a soul and he has, as opposed to the relative competence of their respective patter matching and "mind" computations...