LLMs are intelligent by any reasonable standard. Arguing otherwise is like arguing that chess algorithms aren't good at chess when they easily beat the best humans.
The LLM weights are not intelligent. But if you give an agent a mutable memory store and allow it to iterate, it is obviously intelligent. Not massively - it's constrained by the context window - but definitely somewhat.
The confusing thing is that their language ability far outpaces their true intelligence, and humans aren't used to that. Normally those things are highly correlated, so it tricks us.