Earlier quoted context omitted.
The answer is far weirder - they had a chat bot, and no one even discussed it in the context of search replacements. They didn’t want to release it because they just didn’t think it should be a product. Only after OpenAI actually disrupted search did they start releasing Gemini/Bard which takes advantage of search.
They were afraid to release it because of unaligned output and hallucinations. ChatGPT showed that people could still get value out of something that wasn’t perfect. E.g. they had this in their labs: https://www.theguardian.com/technology/2022/jun/12/google-en... from July, 2022z
And here's the sad part: they had this back in 2019... see this paper released in Jan 2020: https://blog.research.google/2020/01/towards-conversational-...