Yes, the CVE system is broken. LLM-generated CVEs is making it even worse.

I suppose all these fake issues and the many more that have absurdly elevated severities could be considered an attack on the system itself, stripping it of credibility.

That's the worst case scenario right there: so many fake reports that the real vulnerabilities can no longer be reported properly and fixed quickly. Assuming some LLMs really are capable of finding serious vulnerabilities (which in my experience is absolutely the case : just let a good model run on your security code base and see for yourself) that means that we can more easily find vulnerabilities, but it's much harder to report them and be taken seriously - so the incentive to exploit such vulnerabilities instead has become much, much higher.