Prior to the "Elicitation" section, you'd think this article was written by a cryptographer or baroque historian who had been trying to solve this particular puzzle for years - failing embarrassingly until they presented the problem to Claude. However, as far as I can tell (I too am not a baroque historian), there isn't much reason to think this cipher was well-known or studied.
But as they do eventually explain, the LLM's task wasn't solely to solve this specific problem, it was to first identify an unsolved problem it could solve. That's potentially more impressive and difficult than solving the unremarkable cipher itself.