To me it's more like, imagine that you have read a lot of books throughout your life, but then someone comes in and asks a question from you and you try to answer from memory, but you get beaten when you say something like "I don't know", and you get rewarded if you answer accurately. You do get beaten if you answer inaccurately, but eventually you learn that if you just say something, you might just be accurate and you will not get beaten. So you just always learn to answer to the best of your knowledge, while never saying that you specifically don't know, because it decreases chances of getting beat up. You are not intentionally lying, you are just hoping that whatever you say is accurate to the best you can do according to the neural connections you've built up in your brain.

Like you ask me for a birthdate of some obscure political figure from history? I'm going to try to feel out what period in history the name might feel like to me and just make my best guess based on that, then say some random year and a birthdate. It just has the lowest odds of being beaten. Was I hallucinating? No, I was just trying to not get beaten.