Do you genuinely think the AI is internally reflecting on its experience of “flinching” and reporting on a reaction it actually has?

I don’t see any reason to believe this. Suppose you asked it to answer as though a character in a story had been asked this question. Would anything significantly different internally have occurred? The issue is that these are storytelling machines, they construct descriptions based on descriptions.

I dint think it’s impossible for a neural network to have experiences, we are neural networks and we do, it’s that they are not functionally structured anything like us. In fact I think game playing neural networks are much more like us architecturally, but they don’t generate text narratives so people don’t anthropomorphise them.