Maybe. Lewy body dementia has similar symptoms: "Visual hallucinations, often featuring vivid, non-threatening images of small people, children, or animals, are a core early symptom of Lewy body dementia (LBD), affecting roughly 80% of patients. These "little people" hallucinations, along with seeing animals, are often detailed, recurrent, and may occur in the evening. " I knew a lady who had this and she knew she was hallucinating but they were so real.
I wonder, do Asian people see tiny Asians, Caucasian people see tiny Caucasians and so on and so on?