On the contrary I think it weakens your point.
People don't consider "bug" a weasel word, to the point that you yourself held it up as an example of not being a weasel word, despite it being a willful, uncontrollable organism.
I see no reason why "hallucination" won't become a similar piece of neutral jargon. It already is for many people, even if you're not (yet?) among them.
It becomes a neutral term because we are practicioners (presumably?) who benefit from it and have thus let it become habitual. I already admitted it was weasely upon reflection.
If you want this class of LLM error to also become habitual and neutral then fine, I don't, and I think many others don't.