The question reduces to "how does the intrinsic capacities of intelligence, had by humans, give rise to the capacity to answer complex questions?" -- I see nothing which the framing in informational terms adds.
It's nothing more than saying: we know that wires have electrons, and are made of metal, and can support a transfer rate of 1Gbp/s -- and we know that an LLM takes 1 min to answer "Yes" to a postgraduate physics question -- so how/why does the current in the wire at 10^9 bit/s second, support this 1bit/min mechanism?
It's extremely wrong-headed. So much so the paper even makes the absurd claim that Musk's neurallink need not have any high bandwith capabilities because a "telephone" (to quote) would be sufficient.
This is like saying an internet-connected server, hosting an LLM, need not have a high bandwidth RAM, because it only needs to transmit 1bit/s to answer the "yes" question.
In my view there isn't much worthwhile to say under this framing of the problem -- it's a pseudoscientific framing --- as is quite a lot of 'research' that employs 'information' in this way, a red flag for the production of pseudoscience by computer scientists.
Their implied premise is: "computer science is the be-all and end-all of analysis, and of what one needs to know, and so reality must be as we conceive it". Thus they employ an abuse of abstraction to "prove" this fact: reduce everything down to its most abstract level, so that one speaks in "bits" and then equivocate in semantically-weighty ways between these "bits", and pretend not to be doing so. This ends with pythagorean levels of mysticism.