I think Neuro-sama responds based on her definitions (twitch streamer, creator is vedal, osu player) she can respond to twitch messages, throws in random responses based on her definitions, and thanks subs from streamlabs.
Neuro-sama doesn't remember any past interactions which ruins the immersion for me but that is the biggest limitation with AI chat programs is memory of past interactions
The live2d doesn't use any emotions, he rigged it to nod along with the music which is cute credit to vedal
For an early look at what is possible it's novel but it can be so much better.