Earlier quoted context omitted.
I think some earlier NLP applications have something called "Unknown token", which they will replace any unseen word. But for recent implementations, I don't think they are being used anymore. It still baffles me why such stochastic parrot / next token predictor, will recognize these "Unseen combinations of tokens" and reuse them in response.
This helped me understand but not well enough to explain it yet: https://transformer-circuits.pub/2022/in-context-learning-an...
Also, I found these 2 links pretty good too. 1. http://ai.stanford.edu/blog/understanding-incontext/ 2. http://ai.stanford.edu/blog/in-context-learning/
I'm still not completely convinced. Probably need to dwell on the topic longer.