My 5 (at the time 4) year old always understood. We made a game out of it of ‘making new toys’ and she would tell me what it should say.

I would cut open toys and shove microcontrollers in them.

I think if you lie and tell a kid it’s a real person it would be damaging. My kid has fun role playing, she really suspends disbelief. When done she thinks it’s funny though/not confused.

Then why does the product description continually reiterate how “real” the conversations are?