The Madras Sanskrit College in collaboration with IIT-Madras is working on a exclusive LLM for the Sanskrit language - https://madrassanskritcollege.edu.in/

From Mylapore to the World: The Story of India’s Sanskrit LLM - https://www.youtube.com/watch?v=AB_Bic7RqOg

PS: What translations of Yoga-Vasistha/Laghu-Yoga-Vasistha have you read/have had access to? This is one of my favourite philosophical texts and i am curious to know more.