Confabulation is distinct from intentional lying because the person is unaware that the information is false.

: Proponents of this nomenclature argue that "hallucination" implies a sensory experience the model lacks, whereas "confabulation" more accurately describes the generation of plausible but incorrect narrative text. Theoretical Perspectives

For further reading on how this affects clinical diagnosis, you can explore the Verywell Mind guide on Confabulation or the comprehensive overview on Wikipedia .