The bigger problem is that, whichever term you choose (confabulate or hallucinate), that's what they're always doing. When they produce a factually correct answer, that's just as much of a random fabrication based on training data as when they're factually incorrect. Either of those terms falsely implies that they "know" the answer when they get it right, but "confabulate" is worse because there isn't "gaps in their memory", they're just always making things up.