This matches what I've seen too — the hallucination gets much worse when the loop has no external verifier. "Does this board work?" has no ground truth inside the model, so it defaults to optimistic narration.

What OP is doing here is actually the mitigation: SPICE + scope readout is a verifier the model can't talk its way past. The netlist either simulates or it doesn't, the waveform either matches or it doesn't. That closes the feedback loop the same way tests close it for code.

The failure mode that remains, in my experience, is a layer down: when the verifier itself errors out (SPICE convergence failure, missing model card, wrong .include path), the agent burns turns "reasoning" about environment errors it has seen a hundred times.That's where most of the token budget actually goes, not the design work.