If a reasonable observer can’t tell the difference that’s when it matters.
I think a lot of people just haven’t seen good quality math proofs or code from an LLM. When I say it’s indistinguishable from the real deal, I mean it. If you haven’t seen it that’s valid, most devs use LLMs like monsters. But when it’s done right, it’s very high quality.
As far as we know (we currently cannot prove or disprove panpsychism) that is true. However, I think it is important to keep in mind that we do not perceive reality as it is. Rather we experience the brain's interpretation of reality. So in that sense, human "reality" is basically what most of humanity agrees that it is.
It becomes a problem when sufficient number of people suffer from this, or those in important decision making places.