Why, exactly, is this distinction relevant? The brain must store episodic memory somewhere too. From a cursory read, it seems to me that our experiences are processed through the hippocampus and amygdala into a high-level annotated encoding of historical data, stored somewhere else (unclear), fetched based on various triggers, replayed and reinterpreted by the neocortex, and, I assume, sent back through the hippocampus once more for updating. Sure, it's all in the brain, but I don't think physically separating the storage makes it fundamentally different.

I mean, I've replayed old memories in my head before. Sound, image and all. That's kind of like sending historic data into a prompt, isn't it? Of course it's not exactly the same thing, but the difference isn't exactly load-bearing, if you'll excuse the claudism. I feel like we're grasping at straws.