Fully agreed that "hallucination" is a bonkers word for it — sensational and melodramatic. But few people know what a confabulation is, and moreover it's an overly complex way to describe the phenomenon.
The LLM is making something up. It's a fabrication.
It's not fanciful; it's not spooky; it's mundane, as it should be.
I believe that you can also cause something a bit like a transient dysphasia by giving them bad inputs as well, so there is that on the language production side. However there's still nothing that pertains to the experience aspects central to what hallucinations actually are.
The problem with "hallucination" and "confabulation" is that they both imply a consciousness.
It's still just probabilistic babble. We were doing this with markov chains.
I don’t think confabulate matches as well as it implies confusion or mixture of different ideas.
ChatGPT isn’t confused, it’s making things up. It’s trying to bullshit as best it can in hope that what it makes up convinces its user.