It would conceivably be possible to have a lot of physical states. That doesn't mean that they are actually possible from our current state and rewrite rules. So it's not actually a given that it can be built just because it's physical.

Your very idea is also predicated on the idea that it's possible for a real object to exist that isn't physical, and I think most modern philosophers reject the idea of a spiritual particle.

I'm not saying that souls or non-physical things exist, nor that everything physical is feasible for us to build. I was replying to the opinion that AI is never going to be conscious because consciousness is a physical process. I just don't see how that follows.