story
Oh yes we do lol. Many experiments show our perception of reality and of cognition is entirely divorced from the reality of what's really going on.
Your brain is making stuff up all the time. Sense data you perceive is partly fabricated. Your memories are partly fabricated. Your decision rationales are post hoc rationalizations more often than not. That is, you don't genuinely know why you make certain decisions or what preferences actually inform them. You just think you do. You can't recreate previous mental states. You are not usually aware. But it is happening.
LLMs are just undoubtedly worse right now.