I don't understand why you believe it must experience continuous time. If you had a system which clearly could reason, which could learn new tasks on its own, which didn't hallucinate any more than humans do, but it was only active for the period required for it to complete an assigned task, and was completely dormant otherwise, why would that dormant period disqualify it as AGI? I agree that such a system should probably not be considered conscious, but I think it's an open question whether or not consciousness is required for intelligence.