This article assumes that AI is the centre of the universe, failing to understand that that assumption is exactly what's causing the attitude they're pointing to.
There's a dichotomy in the software world between real products (which have customers and use cases and make money by giving people things they need) and hype products (which exist to get investors excited, so they'll fork over more money). This isn't a strict dichotomy; often companies with real products will mix in tidbits of hype, such as Microsoft's "pivot to AI" which is discussed in the article. But moving toward one pole moves you away from the other.
I think many engineers want to stay as far from hype-driven tech as they can. LLMs are a more substantive technology than blockchain ever was, but like blockchain, their potential has been greatly overstated. I'd rather spend my time delivering value to customers than performing "big potential" to investors.
So, no. I don't think "engineers don't try because they think they can't." I think engineers KNOW they CAN and resent being asked to look pretty and do nothing of value.