I'm firmly in the camp that considers calling it "hallucination" or "getting things wrong" category errors that wrongly imply it gets anything right, and have seen nothing that remotely inclines me to revise that opinion. I recognise it as an opinion, though. It can't be proven until we have an understanding of what "understanding" is that is sufficiently concrete to be able to demonstrate that LLMs do not possess it. Likewise the view that human minds are the same kind of things as LLMs cannot be disproven until we have a sufficient understanding of how human minds work (which we most certainly do not), however obviously wrong it may seem to me.
Meanwhile, as that discussion fizzles out, the commercial development of these products continues apace, so we're going to find out empirically what a world filled with them will mean, whether I think that's wise or not.