Earlier quoted context omitted.
Anyone who has worked a bit with a top LLM thinks that they learn world models. Otherwise, what they are doing would be impossible. I've used them for things that are definitely not on the web, because they are brand new research. They are definitely able to apply what they've learnt in novel ways.
If they learn world models, those world models are incredible poor, i.e., there is no consistency of thought in those world models. In my experience, things outside coding quickly devolve into something more like "technobabble" (and in coding there is always a lot of made-up stuff that doesn't exists in terms of functions etc.).
Incredibly poor compared to ours, but thousands of times better than what "AI" we had before.