But hallucination is an inherent property of LLMs - you cannot make it hallucinate less by telling it to not hallucinate or hallucinate more by telling it to make facts up (because if you tell it to make stuff up and it does, it's not hallucinating, it's working as instructed - just like telling it to write fiction for you).
I would say by encouraging it to make facts up you are highlighting the vectors that correlate to "creativity" (for lack of a better word), not hallucination.