I’ve experienced psychosis and it definitely leans more towards a hardware issue. The reason I think this is apophenia - seeing connections where none exist - is a particular state of the mind where neural connection making is highly elevated. In my lay experience it’s as though dopamine, acetylcholine, and norepinephrine are all chronically elevated and create internal feedback loops, which causes a spiral/cascade of accelerated meaning making and increased neural connectivity. This is also experienced physically and mentally as mania, paranoia, anxiety.

This is probably why antipsychotics usually work by damping down on these neurotransmitters really hard, and by preventing that accelerating cascade they interrupt the illness process.