That seems to be a fundamental misunderstanding of what LLM hallucinations are?

A hallucination, when it comes to LLMs, just means "the algorithm picking most likely next tokens put together a string of tokens that contains false information". It doesn't mean the LLM is having a novel false idea each time. If the first time it hallucinates it thinks that that misspelling is the best next-token to use, why wouldn't it keep thinking that time and time again (if randomness settings are low)?