humans, and even animals track different "variables" or "entities" and distinct things with meaning and logical properties which they then apply some logical system on those properties to compute various outputs. LLMs see everything as one thing, in case of chat-completion models, they're completing text. in case of image generation, they're completing an image.

Look at it this way, two students get 100% on an exam. One learned the probability of which multiple choice options have the likelihood of being most correct based on how the question is worded, they have no understanding of the topics at hand, and they're not performing any sort of topic-specific reasoning. They're just good at guessing the right option. The second student actually understood the topics, reasoned, calculated and that's how they aced the exam.

I recently read about a 3-4 year old that impressed their teacher by reading perfectly a story book like an adult. it turns out, their parent read it to them so much, they can predict based on page turns and timing the exact words that need to be spoken. The child didn't know what an alphabet, word,etc.. was they just got so good at predicting the next sequence.

That's the difference here.