Well, yes, by taking AI to mean something different than the current meaning. Of course if you build something that's not an LLM you may find a way to fix the confabulation* problem, but that isn't fixing what we have now.
The history of 'AI' the term is one of continually redefining it to mean something different, as the winds of technology and business blow. In this case, the assertion is that, under what we currently call 'AI', there's not a fix.
* I prefer the term confabulation over hallucination. See <https://universeodon.com/@siderea/109883198218504351>