The embodied cognition is still a theory, can consciousness appears in a simulated brain without a physical body? Maybe. What seems to be a limiting factor for now it's that current models don't experience existence, they don't have memory and don't "think" outside of the prompt. They are just instances of code launched and destroyed as soon as their task is done.
Right now it's possible to simulate memory with additional context (eg system prompt) but it doesn’t represent existence experienced by the model. If we want to go deeper the models need to actually learn from their interaction, update their internal networks and have some capabilities of self reflection (ie "talking to themselves").
I'm sure that's highly researched topic but it would demands extraordinary computational power and would cause lot of issues by letting such an AI in the wild.