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A Microsoft researcher built a goat-powered LLM in Age of Empires II to prove it's not sentient
(www.xda-developers.com)
This is a most excellent place for technology news and articles.
Yes, I think you have a point that for it to be an illusion “something” has to perceive it.
I also think your reflection on consciousness being a some sort of process is interesting. Is it a “machine” process where one input+state always results in the same output? Regardless of the answers implication on agency and choice, the mystery is still that I feel aware. I cannot speak for you, but I think you’d tell me the same, even if you cannot prove it to me.
Regarding the emergence I think one aspect could be scale, and said emergence might not be binary. I listened to a Lex Friedman(think what you will about him) podcast episode with Michael Levin from Dec 3 which talks about things along these lines. Not directly related perhaps, it might be more geared towards intelligence, but you might also find it interesting.