It can't understand. That's not what LLMs do.
It wrote the script, I ran it and it worked. I had it write another script which displays the found duplicate groups so I could see at a glance that the script had indeed worked. And for you this does not constitute any understanding? Yes it is assembling pieces of code or algorithmic procedures which it has memorized. But in this way it creates a script tailored to my wishes. The key is that it has to understand my intent.
Understanding is something a being has or does. And understanding isn't always correct. I'm capable of understanding. My calculator isn't. When my calculator returns a correct answer, we don't say it understood me -- or that it understands anything. And when we say I'm wrong, we mean something different from what we mean when we say a calculator is wrong.
When I say LLMs can't understand, I'm saying they're no different, in this respect, from a calculator, WinZip when it unzips an archive, or a binary search algorithm when you invoke a binary-search function. The LLM, the device, the program, and the function boil down (or can) to the same primitives and the same instruction set. So if LLMs have understanding, then necessarily so do a calculator, WinZip, and a binary-search algorithm. But they don't. Or rather we have no reason to suppose they do.
If "it understands" is just shorthand for "the statistical model and program were designed and tuned in such a way that my input produced the desired output," then "understand" is, again, just unarguably the wrong word, even as shorthand. And this kind of shorthand is dangerous, because over and over I see that it stops being shorthand and becomes literal.
LLMs are basically autocorrect on steroids. We have no reason to think they understand you or your intent any more than your cell phone keyboard does when it guesses the next character or word.
"It looks like understanding" just isn't sufficient for us to conclude "it understands."
We don't have any reason to think that these models produce being, awareness, intention, or experience.