Wisdom vs knowledge, where the word "knowledge" is doing a lot of work. LLMs don't "know" anything, they predict the next token that has the aesthetics of a response the prompter wants.
I suspect a lot of people but especially nerdy folks might mix up knowledge and intelligence, because they've been told "you know so much stuff, you are very smart!"
And so when they interact with a bot that knows everything, they associate it with smart.
Ability to create an internal model of the world and run simulations/predictions on it in order to optimize the actions that lead to a goal. Bigger, more detailed models and more accurate prediction power are more intelligent.
It doesn't seem obvious to me that predicting a token that is the answer to a question someone asked would require anything less than coming up with that answer via another method.
And so when they interact with a bot that knows everything, they associate it with smart.
Plus we anthropomorphise a lot.
Is Wikipedia "smart"?