No, their revised understanding is more accurate. The model has internal representations of concepts; the seahorse emoji fails because it uses those representations and stumbles: https://vgel.me/posts/seahorse/
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Word2vec can/could also do the seahorse thing. It at least seems like there's more to what humans consider a concept than a direction in a vector space model (but maybe not).
https://www.analyticsvidhya.com/blog/2021/07/word2vec-for-wo...
No, this is not a demonstration of logic or knowledge. It is a demonstration of a relational database.
A markov chain presents the same representation in a lower vector space.