That's true, but who said that the goal is intelligence? This is clearly a demo from a startup that sells this kind of service [1]. All that's needed is something that can be made to work under certain business-dictated constraints. Nobody really needs these things to be actually smart.

Or, seen another way, it just has to be smarter than most peoples' web frameworks, or perhaps their IDEs, which is not a very high bar.

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[1] Going by Sharif Shameem's Twitter profile (or bio, whatsitcalled):

founder at https://debuild.co – a faster way to develop web apps // @ycombinator alum // prev built @VectordashGPU // relentlessly optimistic