I keep seeing this idea and I don't understand the reasoning behind it.
I think it could be a bit like saying if you showed someone 500 years ago a smartphone they would likely conclude at first it was magic. But once you had some time to let them use it and tell them how it all worked on a high level they would eventually obviously realise, no, it's not magic.
I guess just in the same way if you presented current LLM tech out of nowhere a few years ago to someone who'd never seen it, I concede they may be likely to imagine it was AGI in that first conversation, depending on their background.
But after using it for a bit and learning what an LLM is etc they'd land exactly where everyone is today - a great technology useful for some things, not AGI, not magic.