The AI answer is both incorrect and nonsensical. It says "OneDrive on the web does not provide a setting to show or hide file name extensions separately. Files are displayed with their names as stored, and the extension is simply part of the file name itself." It's incorrect only partially correct, because extensions are NOT shown in the web interface. Not. Never. Nowhere. Although extensions are shown in the main window, they are NOT shown in search results. Look for yourselves. It's nonsensical because if extensions are simply part of the filenames, how is it that they appear in some displays and not in others???? File Explorer has a setting to turn their display on or off? If by some strange chance this is true in some weird sense, and File Explorer has to do some kind of fancy gyrations to suppress their display, you need to explain this to users in a way we can understand, not just feed us a line that contradicts all the understanding we've developed through years of working with MS files.
It's disgraceful that your AI can't even get a sensible answer out of your own help system, which, big as it is, is both much smaller and much more predictable than the whole of the Web which you now think it's suitable to conjure results from. This is why I will not use any of the AI features you're trying to ram down our throats. It's nowhere near ready for prime time, and the fact that you're behaving as if it is shows how much contempt you have for your customers.