Then where does the knowledge come from

Apparently, parameters have something to do with it. But how?

Ask:

What is the capital of France?

And the answer appears:

Paris.

The word Paris was not in the question. Yet among all the possible words, Paris ranks highly enough to be selected.

This is where the knowledge becomes visible. Not as a fact being looked up, but in the way the parameters make Paris more likely than the other possibilities.

The next question What exactly is a parameter?