and what do we make of it if he was not there. Assigned the report from someone else? An intentional fabrication? Delusional? Part of a conspiracy to create confusion of multiple conflicting reports to perhaps provide additional options? Was there and somehow removed by the official account.
Sorry if I am not willing to dismiss it completely
Assuming that "he" refers to the police officer that writes a specific report on a given arrest here. The guy writing the report is stuck with using the information he has, from the sources he knows. It's not footnoted, nor are specific accounts or sources mentioned, so we don't know exactly where the information used to create the report came from.
What we do know:
The officers involved in the arrest wrote reports about it. All of them say that Oswald was arrested on the lower level of the theater, not the balcony. Many of the officers accounts say that they initially went to the balcony, but descended to the main level when Oswald was found there. At least one account noted that the officers went to the balcony based on the instruction of the radio dispatcher. In the channel 1 radio logs, at about 1:45, there is this transmission from the dispatcher: "We have information that a suspect just went in the Texas Theater on West Jefferson. Supposed to be hiding in the balcony." That transmission seems to be the source of the idea that Oswald was arrested on the balcony, and it was a source broadcast all over the department (and to anyone else who had a police radio). It's not that far fetched, then, to think that a police officer who was not at the arrest to have assumed Oswald was arrested on the balcony based on the radio traffic.
What is important is to note that all of the officers who were in the theater at the time said that Oswald was arrested on the lower level.