Hello Tharayman,
The "smarter" version of Siri that is capable of using Personal Context to perform in-app actions across the system is not here yet. The Apple Intelligence Siri is still using the same basic foundation as the former Siri (to the best of my knowledge), except that it adds ChatGPT integration, a new interface, and more interactive results.
How to get Apple Intelligence - Apple Support
If you keep getting this message with various prompts, it could be a deeper issue; could you provide some examples?
Your device isn't broken, it's just that Siri is (in all honesty) somewhat "broken" right now. It can answer simple search queries, math equations, a few random questions, and perform with the power of ChatGPT; but it can't answer complex questions on its own usually.
By the way, did you enable ChatGPT? This is usually what Siri turns to when it doesn't know the answer.
Let me know your findings and I'll help as best I can.
Have a nice day!