Stop calling them hallucinations. If we're going to anthropomorphize AIs, let's just call it bullshitting and lies. If we're not going to anthropomorphize AIs, then we need a different term
OTOH, it reminded me very much of my own mind (reinforced by ADHD, in my case).
This suggests to me, at least, that "the problem" isn't these models, per se. It's more like: these are probably only one module / layer in a system more similar to our brains. Just as scientists have identified distinct regions (more) involved in, say, language production, or (direct) visual perception, or etc., I'd suggest we've only just built the first substantially more practical / realistic hack / simulation (much like 3D game engines almost always use hacks - e.g., not even using the simple "Newtonian optics" model fully [i.e., "ray tracing"]) of a sort of language cortex. I'd further guess that it's going to take some maturation of a number of methods, technologies, etc. to realistically add more "cortices", but, I do think it's quite likely to happen in approx. the "decades" range...
Highly highly speculative - rather naively based on the way other technologies have developed and with a little basis in work I've done more directly in neurobio etc. No deep(er) reason / analysis, but, just my current very tentative hypothesis.