‘Generally’, but not always! Especially in the Talmud. As explained in the article, the Talmud has a strong tradition of using hypotheticals throughout to clarify edge cases in the laws. And not just here: I was taught a few pages of Talmud once (from Bava Metzia, as I recall), and most of the cases I learnt about were obvious hypotheticals aimed at systematically exploring each and every legal possibility. In this particular instance, absolutely everyone, from modern-day readers to Rabba when he imagined such a case, knows that the described situation would be utterly implausible; anyone who claimed this happened in real life would be obviously lying. But it is useful in elucidating the law to figure out the consequences if it actually had happened in reality.
EDIT: Perhaps [0] (Bava Metzia p21a) is a better example of what I mean. The text systematically describes various situations where scattered kernels are dispersed across a large area: a half-kav scattered over 2×4 cubits, one kav over 4×4 cubits, two kavs over 8×4 cubits, and so on, until all the possibilities are exhasted. None of these are necessarily real cases which have occurred in real life — they’re just enumerating the possibilities to iron out all the edge cases. The hypothetical you quoted accomplishes the same task, albeit less obviously.
[0] https://www.sefaria.org/Bava_Metzia.21a.14?ven=William_David...