How can kneading something create more gluten? Gluten is a protein. Can moving something around create more protein? I doubt it. So what is really happening? Are the gluten proteins bonding differently or tangling?
Yes, kneading develops gluten. Specifically, the gliadin and glutenin proteins in flour form gluten when mixed together with water. It's common, but inaccurate (and confusing I think) to refer to gliadin and glutenin as gluten.
For more about the chemistry of how gluten develops see the paragraph on 'bread products' in https://en.wikipedia.org/wiki/Gluten.