Exactly.

When the predictive text gives the right answer we label it "fact"

When the predictive text gives the wrong answer we label it "hallucination"

Both were arrived at by the exact same mechanism. It's not a hallucination in the sense that "something went wrong in the mechanism" - both good and bad outputs are functionally identical. it's only a hallucination because that's what us humans - as actually thinking creatures - decided to name the outputs we don't like.