Title of your post is literally "New Theory Suggests Chatbots Can Understand Text".
I didn't write the headline, and I happen to interpret it the same way I interpreted it in "Bees understand the concept of zero." Language can have more than one narrowly scoped meaning, and the article body makes it clear it isn't saying anything about human consciousness or introspective understanding.
You also hinted at it with your Pythag analogy.
No, I correctly stated that a model happening upon the Pythagorean function would outperform ones approximating it by statistical correlations. That, as Hinton has said in the past, "predicting the next thing takes knowledge." It makes sense that the development of world models and abstractions from the training data and not simply surface statistics would correlate with both increased next token prediction and network complexity increases.
You interpreted what I was saying as implying the network has some woo woo interpretation of 'understanding' because you seem to be more committed to debating a straw man using inaccurate and overly narrow semantics than actually discussing the topic at hand in good faith.