Yes, Seth calls it our brains performing "best guesses" of what we are experiencing.
If you have not seen his presentation yet, I can recommend it. He even demonstrates how our brains can assimilate false information and accept it as reality. I'll repost it below.
https://www.ted.com/talks/anil_seth_how_your_brain_hallucinates_your_conscious_reality
heh. you do realize people do that collectively and call it reality, right? like just looking at the surface and considering it reality when the truth could be the opposite?
what is ignorant is that intuition is a much more powerful tool when it comes to deciphering lifeforms especially. and this is from years of experience and has been proven to be true more than rational thought because 'lifeforms' are often not rational, so when your intuition kicks in, you best listen and pay attention to it because it's quicker to pick up than your rational mind which is often last to do so. anything else and most likely you will be believing in an illusion or hallucination (even if collectively agreed upon as reality). ironic, isn't it?
almost 99.9% of the time, before you even have concrete evidence, when your intuition is piqueing but your rational mind is contradictory or warring with your intuition, it's interesting that it almost always ends up that your intuition was correct on the draw to pick up the truth more than the rational mind was. because the rational mind is too "constructive" and way too formulated to be concerned with being logical/orderly and projecting that, whereas our intuition picks up situations, motives etc as they ACTUALLY are: imperfect, illogical, irrational and ludicrous as it may be.
what i've found to be the blindspot often is the mistaken notion that the brain itself is some sensory organ and it's not, so the ultimate in rationality. it's where it 'constructs' the info received by the environment. it's not rational if it's not able to pick up the truth no matter how "logical" the constructive thought is. and all truth isn't always just how you slice, dice and preen/prune it to order, liking or palatability. that's only one form of truth, depending on the subject matter.
BUT here is the kicker and where the problem can start: it's too tempting to reconstruct it into a formula of how we assume reality is and that is often based on a conventional or established idea of programming similar to a stencil, even unconsciously. this is why your 'sense' is a powerful tool because it is more fluid and holistic, picking up on subtlety, clues and nuances which are like a trail of crumbs before you even get to the facts that are in-your-face. the rational mind is just not that quick and the last to know.
this constructive thought pattern works well with inanimate objects/subjects but it sure as hell is a totally different ballgame when it comes to living subjects such as humans especially. totally different rules and totally different game.