[williamcotton]

There’s also the position that a definition of confabulate…

To fill in gaps in one's memory with fabrications that one believes to be facts.

…is much more accurate.

Since we’re talking about a technical process it helps to be more precise in our use of language.

[joquarky]

I like to think that it's always confabulating.

It's just that usually the words it generates are accurate enough for my needs.

[DougN7]

If it can’t hallucinate, can it “believe”? I think all the pedantry is silly.