I understood the quoted sentence to be saying, in essence "people claim LLMs aren't really and can't really be thinking or experiencing anything" which is certainly something people say and have written papers on.

As an example, "They're made out of weights" describes why the weight-based construction of neural networks should impact the way that you think about them and their outputs. I would argue that an offhand description of its microscopic formulation tells us nothing at all about how to think about these outputs, or the models themselves. Even if it is a cute story, I think it definitely classifies as succumbing to this fallacy, but maybe I missed some subtle point that you or someone would be happy to illuminate?

By the way, I know it's a parody of another story that makes this exact refutation. But I think this only serves to highlight the point.