> We know how LLMs work fundamentally
We know how they work only at the lowest level (the arithmetic operations) and the highest level (the optimization criterion and the representation of various layers, like the input/output layer and for things we can easily probe like embedding matrices).
We do not know "what they are doing" on the inner layers. This is an area of active research.
> They do not have the ability to reason nor engage in high level thought.
You are speculating (and probably incorrectly), or you're really holding back some valuable research from the field of AI interpretability.