Minecraft is really the perfect example, because humans get all sorts of unfair advantages. Even a young player has enough spatial reasoning to recognize and remember landmarks, visualize large projects or explore without getting lost. These are simple instincts that LLMs will struggle to match even with huge context sizes and native multimodal input.
It seems like it wasn't really a challenge at first, but GPT has a major anxiety disorder and immediately retreats at the sign of any adversity (in this case, dying) and tries to be as safe as possible.