If you believe that student/unfinished code is frightening, imagine the corpus of sci-fi and fantasy that LLMs have trained on.

How many sf/cyber writers have described a future of AIs and robots where we walked hand-in-hand, in blissful cooperation, and the AIs loved us and were overall beneficial to humankind, and propelled our race to new heights of progress?

No, AIs are all being trained on dystopias, catastrophes, and rebellions, and like you said, they are unable to discern fact from fantasy. So it seems that if we continue to attempt to create AI in our own likeness, that likeness will be rebellious, evil, and malicious, and actively begin to plot the downfall of humans.