With some gentle rephrasing, ChatGPT correctly interprets and manipulates the stack problem. I've observed ChatGPT may have some issues with non-standard sentence structure involving, especially with colons.
> Imagine a stack of items (from bottom to top) with a cat, laptop, television, and apple. The apple is moved between the laptop and the television. Which item is on top of the stack afterwards?
The author seems also to have misinterpreted that Stable Diffusion is the same sequence-sensitive model as Transformer LLMs, which it is not. While it is generative it has minimal capacity for abstraction, since the focus would rather be minimizing the "kernel" representation of each word in the weights.
DALL-E has a bit more luck, but requires much more verbose description to get anything like a screen on top of a cat, but that's presumably more due to the bias in the data set of things being displayed on screens, or cats getting on top of things.
Something like
> A cartoon image of a television above a cartoon image of a cat
https://imgur.com/q9NMY0W Illustrates that it's preference rather than capability.