While this is a simple example, the concept extrapolates to more complex issues as we develop cognitively and emotionally. Not only is theory of mind about recognizing that your thoughts and feelings are separate and distinct, but also being able to project your understanding into others to predict how they might be thinking and feeling in their own separate circumstance. This is the fundamental basis of empathy, or being able to predict and understand how others around you may be feeling given their unique current circumstances even if they are different from your own.
LLMs have not demonstrated any of the above understanding. Again, I'm sure they could generate a definition for it, and on any given prompt they could probably even generate some generic-ish text that could pose as empathy, but so can a horoscope. But there is not the deep, continuous comprehension of the user as a separate thinking and feeling agent that is fundamental to the idea of theory of mind.