Now run this system through our LLM for as long as you want with as much power as you want. Where is it going to take you? Nowhere really, it's still just going to be constrained to its pool of data, recombining things in primitive ways and be essentially permanently stuck in the present, until somebody gives it some new data to train on it and mix and match. Yet somehow humanity, starting from that exact same basis, would soon (relatively speaking) put a man on the Moon, unlock the secrets of the atom, discover quantum mechanics, invent/discover mathematics, and much more.
This is what is fundamentally meant by LLMs cannot create "new" knowledge. They absolutely can mix and match their pool of training statements in ways that can generate new statements. But if it's not an extremely simple 'remix' and we're in a domain where there are right and wrong answers, there's good chance it's just a nonsensical hallucination.