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The deal with LLMs is that it’s very difficult to say which piece of training material went into which output. Everything gets chopped up and mixed, and it’s computationally difficult to run backwards.
My understanding of the image generators is that they operate one pixel at a time too, looking only at neighboring pixels. So in that sense, it’s not correct to say they understand the context of anything.
When the gp’s book says that C is a third generation language: I would guess the first generation is Fortran and the second generation contains ALGOL and BCPL. C was heavily influenced by BCPL. (get it? C comes after B)