With respect to the question of having consciousness and free will -- don't we all just reduce down to atoms obeying the laws of physics? Are our actions not therefore deterministic? Sure maybe there's some quantum uncertainty principles at work (but it's not like LLMs produce the same output every time either). So it's not at all clear how consciousness arises, and thus not clear that e.g. GPT-7 "cannot" be conscious.
The other part of this is as relates to the question of AGI and its risks -- there's lots of things that are not necessarily consciousness but are nonetheless extremely bad for humans. Viruses. Tigers. Fire (when not appropriately managed). And for the set of things on Earth we're pretty well equipped to handle them, but if the sun went supernova, screaming "nooo I'm conscious and you're not" would not prevent humanity from being wiped out.