Earlier quoted context omitted.
A "mistake" would be a typo in a real citation. A hallucinated citation is evidence of just plain laziness and negligence, which taints the entire submission.
No it is not. Seriously. All you need for this to happen is for your lab partner to ask AI to add a missing citation that they are already familiar with at the last minute before a midnight submission deadline, and for the AI to hallucinate something else, and for them to honestly miss this. It does not even imply any involvement on your part, let alone that either of you were lazy or negligent on the actual research…
I'm not seeing the problem here. The only problem is that your lab partner should be banned and not you. But being incentivised to check your co-author's work before submission isn't a bad thing.