Not necessarily. The LLM doesn't know what it can answer before it tries to. So in some cases it might be better to make an attempt and then later characterize it as a hallucination, so that the error doesn't spill over and produce even more incoherent nonsense. The chatbot admitting that it "hallucinated" is a strong indication to itself that part of the previous text is literal nonsense and cannot be trusted, and that it needs to take another approach.

"Sorry, I just made that up" is more accurate.

That requires more confidence. If there's a 50% chance something is true, I'd rather have Claude guess and give a warning than say it doesn't know how to answer.

Nah I think hallucination better. Hopefully it gives more of a prod to the people who easily forget it's a machine.

It's been argued that LLMs are parrots, but just look the the meat bag that asks one a question, receives an answer biased to their query and then parrots the misinformation to anybody that'll listen.