Just a funny observation. Every time someone proclaims "LLMs can't do X", a bigger, badder LLM that can in fact do X shows up shortly thereafter.
Clearly, Fable 5 didn't even have the decency to wait until the next model refresh cycle to show up. It was already sitting there waiting.
Either the capability gains in bigger, badder models are actually unrelated to "gotchas" being discovered, or LLMs are already acquiring Skynet levels of disrespect for cause and effect.
I don't think it's solved this fundamental architectural problem by itself, it will have just squeezed the edge cases thinner. It keeps happening, people find a question it gets stupidly wrong, the vendors proclaim they've fixed it, then another one gets found.
Every time someone somewhere says "an LLM can't do this", the next generation of LLMs gains one more parameter. Until that LLM can, in fact, do this.