This ignores the fact that you can often figure out the meaning of the line from context even if you don't know the meaning of each word.
And in the case of Japanese, with words consisting of multiple Kanji you can even get more context of a word from the word without knowing the word. Down to, to a lesser extent, radicals too...
It's pointed out as a shortcoming at the bottom:
>What could make this wrong: >1. "Understood" means you know every word. It ignores grammar, kanji readings, speaking speed and context.
or alternatively, leverages that to structure your intuitive learning process.
Human languages are massively redundant specifically to enable this kind of "fill the gaps" learning process.
Observe an unknown word used a few times in different contexts, and you'll get a very good bead on what it means.
It's the "natural" way of learning a language. No one gets every word explained to them in detail - most words you know in your own first language are the ones you picked up on the go.
I think this "structural redundancy" might be a big part of what enables LLMs to learn human languages "from nothing".