Why Coding Agents Hallucinate in Sandboxes: The Real Fix

A coding agent in a browser sandbox is doing improv comedy with no audience to ground it. Every prompt is a cold open. The model doesn't know your folder structure, your import patterns, your naming conventions, or whether Button lives in src/components/ui/ or app/_components/. So it guesses. Then it guesses again. Then it writes a Button that imports from ./ui/button.tsx that doesn't exist, hallucinates a Card API, and ships a <div> dressed as a Tabs.

Anyone who's pasted a "build me a SaaS dashboard" prompt into a browser-based vibe-coding tool has seen this. The first 200 tokens of output look great.

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This is an excerpt. Read the full post at otf-kit.dev/blog/why-agents-hallucinate-in-sandboxes — full-stack kits your AI coding agent can actually ship to production. Browse the kits →