I mean, humans exist. We know a blob of fat is capable of thought.
Sure, but what does that have to do with AGI? I don't think anyone is proposing simulating an entire brain (yet, anyway).
Like you could have "AGI" if you simply virtualized the universe. I don't think we're any closer to that than we are to AGI; hell, something that looks like a human mouth output is a lot easier and cheaper to model than virtualize.
The question is whether AGI makes sense as a concept without a moving, living, feeling body.
No, we know planetary ecosystems can use energy gradients to sustain intelligent lifeforms. Intelligence is not a feature of the human brain, it's a feature of Earth. Without the ecosystem there are no cells, no organisms, no specialization, no neurons, no mammals. It isn't the human brain that achieved intelligence, it's the entire system capable of producing, sustaining and selecting brains.