Either way, I can get arbitrarily good approximations of arbitrary nonlinear differential/difference equations using only linear probabilistic evolution at the cost of a (much) larger state space. So if you can implement it in a brain or a computer, there is a sufficiently large probabilistic dynamic that can model it. More really is different.
So I view all deductive ab-initio arguments about what LLMs can/can't do due to their architecture as fairly baseless.
(Note that the "large" here is doing a lot of heavy lifting. You need _really_ large. See https://en.m.wikipedia.org/wiki/Transfer_operator)
If you limit yourself to Markov chains where the full transition matrix can be stored in a reasonable amount of space (which is the kind of Markov chain that people usually have in mind when they think that Markov chains are very limited), LLMs cannot be represented as such a Markov chain.
If you want to show limitations of LLMs by reducing them to another system of computation, you need to pick one that is more limited than LLMs appear to be, not less.