I see two sides to this argument which have to do with defining what a Theory of Everything really is.
One way to see it is a theory that explains all of physics and unifies all [current] theories of physics. Another way is that the ToE simply explains everything, and probably unifies all scientific theories, including theories like evolution. If it were a theory in physics, is it up to the theory to explain consciousness? Or should that be up to psychologists and neurologist to come up with a theory of consciousness which would be a subject in psychology alone? Much like how the theory of evolution is a theory in biology. We don't expect quantum mechanics or general relativity to explain evolution or the diversity of life. By that, I mean that these physics theories don't predict evolution or how life should evolve. Would a theory of everything explain and predict something like evolution and natural selection, as well as other observable phenomenon like consciousness or heliocentric solar system? Or would it only explain all physical and intrinsic properties of the Universe? Should a theory like this be called something other than the Theory of Everything?