I disagree with Sutton that a main issue is using human generated data. We humans are trained on that and we don't run into such issues.

I expect the problem is more structural to how the LLMs, and other ML approaches, actually work. Being disembodied algorithms trying to break all knowledge down to a complex web of probabilities, and assuming that anything predicting based only on those quantified data, seems hugely limiting and at odds with how human intelligence seems to work.

Sutton actually argues that we do not train on data, we train on experiences. We try things and see what works when/where and formulate views based on that. But I agree with your later point about training such a way is hugely limiting, a limit not faced by humans