Anyone who has spent time with parrots would realise that they can understand the meaning of speech without knowing what the words mean. Then somehow the meaning of word parts, and then you will find them making new words out of other words. Very clever indeed.

So stochastic parrots could indeed be a good description of LLMs. But I think that she meant it as a diminishing term (against the technology) which is pointless. Probably more of a reaction against SV tech bros than more nuanced interpretations.