Because the AI relied on outdated data; it was not a hallucination.
Was there some sort of investigation I was not aware of?
Yeah that's the whole problem. Now the process is: take crappy data, shove it in the AI machine, and the jackboots do whatever the AI says to do. That's how the government works now, apparently.
Works great for them because whenever something goes wrong they can just blame "outdated data" and move on.
source: