Sleep would probably be a part of the equation for consolidating , but there's still the question of how exactly does the brain process the information during sleep in a way that it permanently consolidates the information.

It's not how an llm can work right now, it needs too much iterations & a much bigger dataset than what we can work with. A single time experiencing something and we can remember it. That's orders of magnitude more efficient than an LLM right now can achieve.