It can't even natively understand how many letters there are in words - how will it understand the meaning?
This is kind of a like assuming someone with bad spelling is stupid.
Counting letters in a word seems to have little to do with understanding the word. Young kids can’t spell or count well at all but no one says that means they can’t understand.
I wish people would do even the most basic amount of research into LLMs before opining about what they can or cannot do. There are very principled reasons why LLMs do not know how many letters are in words, and it says nothing about their facility for understanding meaning.
Tokens are the most basic input unit of an LLM. But tokens don't generally correspond to words or letters, rather sub-word sequences. So Strawberry might be broken up into two tokens 'straw' and 'berry'. It has trouble distinguishing features that are "sub-token" like specific letter sequences because it doesn't see letter sequences but just the token as a single atomic unit. 'Straw' and 'r' are two tokens but an LLM is entirely blind to the fact that 'straw' has one 'r' in it.
As an analogy, I might ask you to identify the relative activations of each of the three cone types on your retina as I present some solid color image to your eyes. But of course you can't do this, you simply do not have cognitive access to that information. Individual color experiences are your basic vision tokens.
The widespread mistake people keep making is assuming the development of intelligence in LLMs should follow the same trajectory that human intelligence takes as it develops into adult levels of intelligence. Thus deficiency in some capacity that we take for granted in humans is an indictment on LLM intelligence. But this is specious. LLMs are entirely alien; their developmental paths do not and should not look anything like ours. Your intuition from human intelligence just works against understanding the potential for intelligence in LLMs.