This doesn't really have anything to do with the language model. The temperature only has to do with the _sampling_ from the probability distribution which the language model predicts. In fact, raising the temperature would eventually cause the model to randomly print "left" or "right," (eventually at 50/50 chance) not converge on the actual distribution which the prompt suggests. I suppose if you restricted the logits to just those tokens "left" and "right", softmaxed them, and then tuned the temperature T you might get it to reproduce the correct distribution, but that would be true of a random language model as well.

I think its pretty simple and straightforward: the model simply fails to understand the question and can reasonably be said to not understand probability.