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no, LLMs can have that contextualized information. understanding in a reasoning sense means classifying the thing and developing a deterministic algorithm to process it. If you don't have a deterministic algorithm to process it, it isn't understanding. LLMs learn to approximate, we do that too, but then we develop algorithms to process input and generate output using a predefined logical process.
A sorting algorithm is a good example, when you compare that with an LLM sorting a list. they both may have correct outcome, but the sorting algorithm "understood" the logic and will follow that specific logic and have consistent performance.
