Probably the skepticism is around someone actually trusting the LLM this hard rather than the LLM doing it this badly. To that I will add that based on my experience with LLM enthusiasts, I believe that too.
I have talked to multiple people who recognize the hallucination problem, but think they have solved it because they are good "prompt engineers". They always include a sentence like "Do not hallucinate" and thinks that works.
The gaslighting from the LLM companies is really bad.