Earlier quoted context omitted.
> Panpsychism requires that the universe updates its state by conscious choice, which we already know happens Can you clarify what we "already know happens"? Even for humans, it's not clear that "conscious choice" exists and causes changes in state, because we don't know what the mechanism is that can cause a state change other than state at time T-1.
Isn't it assumed that everything is deterministic apart from what is done by the somewhat magical, "free will"?
How does that relate with the experience of decision making? That's a complete unknown. But the simplest explanation is that free will is simple, once we define it as "the experience of making a decision" instead of the traditional, nonsensical definition of "the act of making a decision that is fundamentally independent from prior events". Usually free will is framed as "choice vs slavery", which is a useless definition because choices can't be made in a vacuum.
In other words, of course we have free will: We feel like we have free will, and free will is simply the feeling of having free will. Conscious decisions (if those even exist!) are physical processes just like everything else in the universe.