Generalisation is the opposite process, hypothecating a universal and finding counter-examples to constrain the universal generalisaton. Eg., "all fire burns" is hypotheticated by a competent animal upon encountering fire once.
Inductive "learners" take the opposite approach: fire burns in "all these cases", and if you have a case similar to those, then fire will burn you.
They can look the same within the region of interpolation, but look very different when you leave it: all of these systems fall over quickly when more than a handful of semantic constraints are imposed. This number is a measure of the distance from the interpolated boundary (e.g., consider this interpretation of apple's latest paper on reasoning in LLMs: the "environment complexity" is nothing other than a measure of interpolation-dissimilarity).
Early modern philosophers of science were very confused by this, but it's in Aristotle plain-as-day, and it's also extremely well establish since the 80s as the development of formal computational stats necessitated making this clear: interpolation is not generalisation. The former does not get you robustness to irrelevant permuation (ie., generalisation); it does not permit considering counterfactual scenarios (ie., generalisation); it does not give you a semantics/theory of the data generating process (ie., generalisation, ie. a world model).
Interpolation is a model of the data. Generalisation requires a model of the data generating process, the former does not give you the latter, though it can appear to under strong experimental assumptions of known causal models.
Here LLMs model the structure of language-as-symbolic-ordering, that structure "in the interpolated region" expresses reasoning, but it isnt a model of reasoning. It's a model of reasoning as captured in historical cases of it.