I tend to see people bringing that up in a dismissive way (not suggesting you are) as a clear indication they either haven't thought the argument through or do not understand how little it takes for a system to be Turing complete, and so for that argument to be meaningless.
This model will arise from the desired sequence as a single training example (learning the probability of each pair of consecutive tokens), provided none are repeated.
Now run your Markov chain with initial input {first token in your sequence}.
I'm agreeing with your overall point, to be clear - my point is that calling something a Markov chain is effectively calling it trivially extendable to something that can in principle compute everything any physical entity confined to the known laws of physics can, and so what it boils down to is whether or not the model is trained in a way that gives it those abilities, and not the put-down of the potential ability of such a system that people usually intend the "just a Markov chain" as.
"But that wasn't an LLM."
OK, show me a Markov chain that can write a Python program that can play Go at all.