If you check out https://veruscite.com/hallucinations there are much more banal examples than that article.

Part of the forensic work with this, I won't ever be able to tell the difference between "I as a human messed up" vs "LLM go brr and filled in everything". So I think editor discretion when to correct vs when to retract is fine. (I do think that PLoS One correction should have been retracted as well though.)