That’s how far current technology goes but one day someone will find the missing ingredient and get good reasoning out of it. Right now it is an impressive language model.
How could we know if it found the key ingredient or it was pretending that?
Does it really matter? If it eventually gets basic logic right and can do research/correction of it's own mistakes - it'll be insanely valuable tool even if it doesn't have consciousness as we do.
We would know based on whether it was actually correct on a wide variety of topics or if it was wrong. Right now it is obviously wrong about a lot of basic things.