That story is easy to understand and thus catchy, but it is not true. The cause of those 1201 and 1202 alarms is a lot more complex, but well worth taking the time to understand if you are into the topic. Wikipedia offers a short description [1] to get you started.
GP did not suggest anything of the kind, though. They talked about "figuring out where to look" which very different. In that kind of use, it doesn't really matter that the model might hallucinate or draw faulty conclusions, as you're not using it figure out what to do, how or why. The only thing it is telling you is where some information is located, after which you go check it out from the actual source of truth. If the reference turns out to be wrong, you'll notice immediately.
Imagine being so well off that you don't even notice being off by ten orders of magnitude. Meanwhile, there are people dealing with negative exponents.
[1] https://en.wikipedia.org/wiki/Apollo_Guidance_Computer#1201_...