It can only hallucinate if your i2i noise level is high enough, if you're adding enough noise that the latent is basically filling in giant swaths of noise area

It can only hallucinate if your i2i noise level is high enough, if you're adding enough noise that the latent is basically filling in giant swaths of noise areas then of course its going to make up new stuff, thats not hallucinations as much as you asking the AI to draw that entire area as something new.