LLMs do have explicit world models that can be even manipulated. There are many recent papers on the subject.
Fine-tuning is like a PR agent teaching someone what sorts of things not to mention on TV even though they may be true.
This paper shows an emergent world model in an LLM that was taught to play otello moves https://ar5iv.labs.arxiv.org/html/2210.13382
https://arxiv.org/pdf/2303.12712.pdf This paper discusses (among other things) how a GPT4 model navigated between rooms in a text adventure game and was able to create a map afterward. Literally building a model of the world as it was navigating and drawing a map of that afterwards