It absolutely will fake citations. An academic friend of mine intentionally wrote an essay topic for her students last semester where the students had to includ

It absolutely will fake citations. An academic friend of mine intentionally wrote an essay topic for her students last semester where the students had to include references. She picked an essay topic where she knew ahead of time there were only 3 papers with relevant content. She caught a dozen or so of her students cheating (via chatgpt) by looking for hallucinated papers in the bibliographies.