Its an incorrect assumption, the inference speed and particularly the inference speed of the on-device LLMs with which AVs would need to be using is not compatible with the structural requirements of driving.
Sure, there will be a VLM for reading the signs, but the worst it'd be able to output is things like "there is a "detour" sign at (123, 456) pointing to road #987" - and some other, likley non-LLM, mechanism will ensure that following that road is actually safe.