To create true AGI, you would need to make the software aware of its surroundings and provide it with a way to experience the real world.
If you do manage to make a thinking, working AGI machine, would you call it "a living being"?
No, the machine still needs to have individuality, a way to experience "oness" that all living humans (and perhaps animals, we don't know) feel. Some call it "a soul", others "consciousness".
The machine would have to live independently from its creators, to be self-aware, to multiply. Otherwise, it is just a shell filled with random data gathered from the Internet and its surroundings.
An AI without a body, but access to every API currently hosted on the internet, and the ability to reason about them and compose them… that is something that needs serious consideration.
It sounds like you’re dismissing it because it won’t fit the mold of sci-fi humanoid-like robots, and I think that’s a big miss.