You can argue those are facts too.
It’s more likely it’s just, once again, generating the most probable answer - and if you shake the magic 8 ball enough you will get the answer you were expecting.
If I asked you a question and you had to respond with a stream of consciousness reply, no time to reflect on the question and think about your reply, how inaccurate would your response be? The "hallucinations" aren't a problem with the LLM per se, but how we use them. Papers have shown that feeding the output back into the input, as happens when humans iterate on their own initial thoughts, helps tremendously with accuracy.
Yes, I'm saying here that peoples' inner voices are hallucinating in very similar fashion; "rejecting fictional generated output that makes no sense" is a process that's consciously observable and involves looping the inner voice on itself.