I'm not projecting my AGI dreams on ChatGPT. I'm being insanely impressed by what it does and continuing to see massive progress in that direction is thrilling, worrisome, interesting and so on. Nitpicking that it made a mistake in such a subtle assumption and handwaving away its understanding of things is disingenuous.

Yes, it does some seriously impressive things. (Some of the time.)

But to refer to it as "understanding" anything is to make a rather large leap of faith, IMO. (Or it's a devaluing of the word "understand".)