Actually I remember back when people start to calling it hallucinations there was quite a bit of pushback on it because it's a complete mischaracterization of what's going on.
If you are performing a task and you make a mistake, that wasn't hallucination, it was a mistake.
When AI is hallucinate it's not because they "think" the hallucination is real, it's just that their weird math brain spewed out the wrong answer, for whatever reason, and now they are stuck with it and need to try and make some kind of coherent sentence out of it.