An LLM cannot lie because a lie requires intent to deceive. These are falsehoods, and LLM has no intent or free will. It's only a lie if it's knowingly passed off a truth and this happens by the user and not the LLM or other generative AI.
This also makes some blanket statement about procedural generation and shows a No Man's Sky image. That game became a huge success.
They said "Classic procedural generation is noteworthy here as a precedent, which gamers were already familiar with, because by and large it has failed to deliver."
I could name a dozens of games that were successful and used procedural generation. Including games like Minecraft, similar games like Valheim, indie games like Wildermyth that is used to create a great character narrative, and even games like Diablo. The more recent hit Mewgenics is also procedural along with past Edmund McMillen games. I swear this person never played a video game before.