Compression is the trick. Its even philosophed about if compression = intelligence.

The LLM has to compress everyy question/prompt into its system. It does so by creating rules and ways of processing data (this can lead to AGI, world models or an architecture of sub architectures like an LLM + something else). So if it should respond in a way that only reasoning people can achieve, it might be able to learn a representation of what we call reasoning.

It read enough text in itself to even know about the concept of reasoning and how you would do that.

Even if this is only stochastic, it shouldn't be so devalued as your comment comes across.

Who says that we are doing anything more magic?