These effects are becoming more rare as the SOTA models are improving so much. If you spent a lot of time with earlier LLMs or you experiment with smaller, quantized local LLM models this type of thing happens very frequently. When you see it happen so much on a model you’re running on your own hardware it becomes a reflex to chuckle and reset the session with a clean context. When it happens from a hosted provider it can be scarier because it’s not the type of failure mode most people are used to seeing.
It's a hallucination.