To me, ChatGPT clearly displays degrees of understanding. Often when I ask it to do things like make a certain modification to a piece of code, I'll ask it "why did you choose to do it like that?" and it gives a coherent explanation. That it correctly did what I asked and that it's explanation of why it did that way comport with one another implies understanding in my view. How could it not? What else would that imply? And if I ask a human to do the same thing and get the same result you'd have no problem with saying "well it's able to do that because it understands, and if it didn't understand then it would have zero capability of doing that". So, what's with the double standard?