I'm able to take initiative and act on my own internal thought processes, though. I'm not limited by whether someone prompts me to do something.

You and me think we are but we can't be sure, and many before us have raised a doubt.

As for the prompt(s), to use such a limiting term, they could as well come from a self-reinforcing loop that starts when we're born and is influenced by external stimuli.

LLMs as part of a bigger system that keeps prompting itself, perhaps like our internal conscious thought processes, sounds a lot more like something that might be headed towards AGI. But LLMs on their own aren't it.