I’m not sure either would is particularly good at describing what is happening.
Error in implies something broke, which nothing broke the LLM did exactly what they where designed to do generate text based on a statistically likely bases.
Hallucination Does really fit here either. It implies it’s experiencing something that is not there which it isn’t experiencing anything.
Howabout: lied. The LLM lied indirectly (perhaps) but it made a claim that was false. Which is a lie.
Humans lie and LLMs “hallucinate”? What gives. It’s an untruth that the LLM is selling for a truth, that’s lying in my books.
And since we don’t know how or why the LLM works, we can’t even judge whether it explicitly lied or only because it didn’t know better.
Unexpected Result is perhaps a more accurate description.