LLM's only make a "best guess" for each next token. That's it. When it's wrong we call it a "hallucination" but really the entire thing was a "hallucination" to begin with.
This is also analogous to humans - who also "hallucinate" incorrect answers, usually "hallucinate" incorrect answers less when they "Think through this step by step before giving your answer", etc.
I was fortunate enough to attend a talk given by the person primarily responsible for writing it and he (as well as some people already using it) said they see no discernable performance difference.
