This is a prime example of the moving goalpost of what intelligence "actually" is - in previous eras, we would undoubtedly consider understanding context, putting together syntactically correct sentences and extracting the essence from texts as "intelligent"
The goalpost was never in that spot.
It reminds me of people who use "big words" without actually understanding them. If they don't overdo it or really miss the meaning of a term, they can seem much more educated than they are.
You're asserting here that it understands context, but you haven't provided any argument in support of that assertion.
I think you'll also need to define what you mean by "understanding" (because that term is loaded with anthropocentric connotations) and clearly state what "context" you think the model has.