They have the sum of the same cognitive biases of the input.
It's the classic copy-of-a-copy problem. It's lossy. And not a hallucination any more than any other human spouting off irrelevant or non-factual words.
I got the joke but don't see the humor because it perpetuates outdated thinking about the war on drugs.
There's a lot of good science and research coming back around for psychedelics and it'd be a shame for that to get politicized again like it did in the 60's and 70's. It took a long time to undo the harm from that era and it's still somewhat fragile. Basically all research was halted and 50 years of progress was lost because of politics.