What happened was: over the 8 years between 2006 - 2014, a particularly vocal and organized group of fringe singletarians promoted the idea that once AGI is achieved (the originally well-defined conception of AGI), it will rapidly undergo recursive self-improvement and emerge as a singularly powerful entity with absolute power and control. The debate was whether this would happen in mere hours/days (fast takeoff) or months (slow takeoff). These nutcases would go on to take founding roles first at DeepMind, then OpenAI, and later Anthropic & other foundational labs.
That they would achieve AGI and then neither of those outcomes come to pass was not in their range of predictions. Rather than admit to themselves that their analysis was wrong, they move goal posts: ChatGPT isn't real AGI. Real AGI would have taken over the world, so that can't be it. It is circular reasoning.
No, it is real AGI. Real AGI didn't cause a singularity because intelligence actually doesn't matter as much as a bunch of autistic smart internet people think it does.