They have momentum, not intent. They don’t think, build a plan internally, and then start creating tokens to achieve the plan. Echoing tokens is all there is. It’s like an avalanche or a pachinko machine, not an animal.
> some form of reasoning (what else is step-by-step doing?)
I think they reflect the reasoning that is baked into language, but go no deeper. “I am a <noun>” is much more likely than “I am a <gibberish>”. I think reasoning is more involved than this advanced game of mad libs.