I don't think your characterisation of the Dartmouth Project and machine learning are quite correct. It was extremely broad and covered numerous avenues of research, it was not solely related to machine learning though that was certainly prominent.

The thing that bothers me is how reductive these recent narratives around AI can be. AI is a huge field including actionism, symbolism, and connectionism. So many people today think that neural nets are AI ("the proper term for the study of machine learning"), but neural nets are connectionism, ie just one of the three major fields of AI.

Anyway, the debate as to whether "AI" exists today or not is endless. But I don't agree with you. The term AGI has only come along recently, and is used to move the goalposts. What we originally meant by AI has always been an aspirational goal and one that we have not reached yet (and might never reach). Dartmouth categorised AI into various problems and hoped to make progress toward solving those problems, but as far as I'm aware did not expect to actually produce "an AI" as such.