They dont. They have input that runs through a invisible stochastic canyon. As long as there is previous experience the stochastic canyon never ends. If there is none or isignificant one, or it runs out of tokkens, it hallucinates and the illusion falls apart. There is no reasoning, just the invisible grand canyon of all of human experience and knowledge. PS: try to get it to retell you a clichee movie or book and you can see life near the end, how the delta of all the same movies opens up into wildly different endings.

To advance further it would need the ability to abstract away the general situation shape and pattern recognize similar situations.

My toaster doesn't reason, and neither do the current clankers.

there's a 2MP about the related paper: https://www.youtube.com/watch?v=l72ufA-4SzE

Do LLMs have Qualia?

One plausible reason I thought of that we may not understand neural nets is that by their nature their power grows with ever-more complex connections and weights.

So it is like the opposite of logical systems, in that the very design of neural net architecture is a mess of parameter "spaghetti code" which renders the entire thing a metaphorical encrypted black box. The more powerful an AI/AGI the more this would be the case, and this is analogous a complexity curve.

And so any effort to make sense of such black box computation would be like trying to reverse entropy, analogous to trying to recover information lost in waste heat. And that could be one fundamental barrier to understanding both human and artificial brains alike, relative to their internal complexity.

(Just thinking aloud my handwavy pet theory recently, I am not an expert and could be totally mistaken on this)

Clickbait article title.

The article body does not presume they reason.

Do they ?

They don't reason.