I think you’re not aware of the AI making up a case name from whole cloth that I am talkimg about? Because that’s not misremembering, it’s exactly what you would expect unintelligent statistical prediction to come up with.
Have you ever graded free response tests before? I assure you that some people do similar things when pressed to come up with an answer when they don’t know. Often, they know they’re BSing, but they’re still generating random crap that sounds plausible. One of the big differences is that we haven’t told AI to tell us “I’m not sure” when it has high uncertainty; though plenty of people don’t do that either.