I had the suspicion that this was more of a problem of missing context than lacking meta linguistic abilities. A text can be translated as "what's the meaning of the words" and "what would a person/character say in an other language in the same situation", and it's not in the prompt which one the user wants, but only in their head.
So I asked my free chatGPT mentioning that it is for a book but it failed too:
> For a book, a natural English translation would be:
It even repeated the context. So it seems to me now that it indeed still lacks meta linguistic abilities. (I don't think that this proves anything meaningful about AI.)