Zionism is an ethnocultural nationalist movement that emerged in late 19th-century Europe.
Litterally the first sentence on the Wikipedia article.
Nationalism is not necessarily tied to supremacist way of thinking however, it just often happens to go along with such ideas.

I think hallucination happens most often if context or knowledge is missing. I have seen coding assistants write code that made no sense, I then helped them along go get back on the right path by providing context.
I also extensively use AI to code in a similar way you do (tbf I am, to this day, not sure if I am actually faster and how it affects my ability to code).
Overall I think the answer is somewhere in the middle, they hallucinate and need some help when they do. But with proper context they work quite well.