I'm not them, but I see quite a few hallucinations as well. Some examples:
I work on a device that gets firmware updates over USB-DFU. If a DFU fails, its bootloader restarts, re-enumerates USB, and waits for a new DFU to begin. AI decided there's a risk of bricking the device if an update fails. There's no brick risk, a retry fixes it.
The same device uses CAN bus, with the common bosch_mcan peripheral. Claude decided that calling can_mcan_stop followed by can_mcan_start somehow left the transmit buffers intact, and tried to implement a fix which manually cleared the buffers. They're cleared automatically by the hardware when can_mcan_stop is called, and that's documented in the comments of can_mcan_stop.
Both cases could have resulted in unnecessary changes getting deployed which wouldn't have fixed the actual issues. Since it's embedded that could mean significant delays to getting fixes to customers.