Nah man. Windows 10 was full of telemetry from day 1. It was the first version of Windows that hid away the ability to even use a local-only login, trying to push every user onto a MS account for that sweet tracking and advertising dollar.
They even gave the OS away for free - absolutely unthinkable to 90s/2000s era Microsoft, now why would that have changed?
Pushing the users to their cloud offerings for those that they can tempt, and tracking, profiling, advertising for every user. From conception.
A hallucination is a false perception of sensory experiences (sights, sounds, etc).
LLMs don’t have any senses, they have input, algorithms and output. They also have desired output and undesired output.
So, no, ‘hallucinations’ fits far worse than failure or error or bad output. However assigning the term ‘hallucinaton’ does serve the billionaires in marketing their LLMs as actual sentience.