That's exactly it, and that is what is so hard to get other people to understand. It's a random word generator. It can't 'hallucinate' or 'confabulate' anymore than dice can. It cannot possibly be wrong or incorrect.
Those of us who've played D&D or something similar are familiar with rolling dice, say a 10-sided die and a 6-sided die, and cross-referencing the results against a table to generate random monster encounters, treasure, etc.
If you roll a die to determine how many gold pieces an orc is carrying, and you roll a 5, that is the result. You don't claim that the dice was hallucinating or confabulating or got the facts wrong or whatever. It's a random generator, and it generated a random number, and that result is truthfully the result it generated.
LLMs are also random generators. They're not databases of facts, they're not mathematical calculators. They are like the D&D random generation tables, only developed deeply enough such that they can string together randomly generated words into coherent sentences and paragraphs.
That sentence/paragraph is just as true as the result of rolling some dice. If you roll an 11, then you rolled an 11. The dice didn't hallucinate it, confabulate it, lie about it, or get it wrong. The true result is that you rolled an 11. If you wanted to roll a 12, too bad. You were unlucky. The dice weren't somehow magically 'wrong'.
And an LLM is not somehow magically wrong or incorrect or hallucinating or even confabulating when it gives you an answer that isn't what you wanted. It's randomly generating text. And its answer is every bit as correct as the result of rolling dice or drawing a card.