Of course it does. The question shown in the screenshot is "who is Arve Hjalmar Holmen?". That's something someone would type into Google search, it's not "write me a fictional story about a man called Arve Hjalmar Holmen".
People use these systems like search tools, they're sold and advertised as information retrieval systems, literally what else would be their point for 90% of people, they're starting to be baked into search products and in return web search is itself included in the AI systems, etc. The top post on HN right now is Claude announcing:
"Instead of finding search results yourself, Claude processes and delivers relevant sources in a conversational format."
What are you gonna tell me next, the bong on your table is really a vase?