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Foundations u2013 LLM Capabilities and Limits·Lesson 2 of 24·15 min

Hallucination, reasoning gaps, and when agents help

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Concept Before building anything, you need a precise vocabulary for how agents fail — otherwise every bug looks like "the AI is being dumb" and you can't pick the right fix. There are four distinct failure modes, and each is addressed by a different later module. Hallucination is the model stating something false with full confidence — inventing an API……

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