Yes, but that won't be a hallucination. Same root cause, but IMO it was pretty clear they meant "given options red, green, blue this will never say purple", doesn't mean it still can't misclassify green as blue.
Yup, fair enough - having read the full overview from typesafe I agree they mean “won’t assign a probability to an outcome outside a defined set” rather than “won’t incorrectly assign a probability”.