> Consciousness itself is probably just an illusion
This is a major cop-out. The very concept of "illusion" implies a consciousness (a thing that can be illuded).
I think you've maybe heard that sense of self is an illusion and you're mistakenly applying that to consciousness, which is quite literally the only thing in the universe we can be certain is not an illusion. The existence of one's own consciousness is the only thing they cannot possibly be illuded about (note: the contents of said consciousness are fully up for grabs)
I mean peoples perception of it being a thing rather than a set of systems. But if that's your barometer, I'll say models are conscious. They may not have proper agency yet. But they are conscious.