This is what the stochastic-parrot takes (and the older monkeys-at-typewriters take) entirely miss. We’re all stochastic parrots attached to monkeys on typewriters all the way down. That’s only insulting if you don’t like parrots and monkeys and imagine you possess some ineffably higher-order consciousness their kinds of minds cannot embody.
The fascinating thing is, parrots and monkeys are all you need. That’s all it seems to take to produce anything we consider intelligent behavior, and we’ve barely begun to scratch the surface of that behavior space, which is far vaster than we imagined.