Bob will never figure out there is an error in his paper. If someone tells him, the LLM will have trouble to figure it out as well, remember the LLM inserted the error to make it "look right".

Your perspective is cut off. In the real world Bob is supposed to produce outcomes that work. If he moves on into the industry and keeps producing hallucinated, skewed, manipulated nonsense, then he will fall flat instantly. If he manages to survive unnoticed, he will become CEO. The latter rather unlikely.