I don't understand your beef. My awkward dialogue was just to demonstrate that the LLM can pick up on all of these things you claim it can't. The LLM wouldn't "believe it didn't have a friend", why would you think that?
It's fine if you just don't like that this is happening. You can play other games as people enjoy their LLM-powered games.
Your crappy awkward dialogue is probably a very realistic example of a stupid bot that doesn’t even know what actor it represents in game.
You’re asking why if would think that? You tell me how it would come to the conclusion correctly by using the game logic. And don’t give an answer that requires a hard coded dev interface between specific game elements and the LLM because that is on its own a more complex task than the LLM itself. It’s incredibly difficult. Shitty home assistants that can’t actually do anything being the prime example. The language processing is not the hard part. It’s the mapping of language to data and capabilities that’s extremely hard.
Synthesizing an agent that can form an identity based on its experiences and leverage game mechanics to pursue goals and convey all of this logic in flexible natural language is basically asking for a general intelligence. It’s an incredibly different thing from the shitty dialogue example you wrote
I also think that you're intentionally missing the point so that you can be insulting.
May you find games to play you enjoy.
If the dwarf bot does not know that the character he represents spent the last 24 hours in combat alongside another specific dwarf without you communicating this in text then it might as well not be attached to any character. Liked what would the point be??? That’s just an out of game bot.
Your example conversation of leading the bot to say specific things is… awful in my opinion. Who would want to talk to an NPC like this?