> "scholars" citing Wikipedia could very well create a circular reference supporting some falsehood on a Wikipedia article.

Using Wikipedia and citing Wikipedia is perhaps ill advised.

Using Wikipedia and not citing Wikipedia is a real problem and how you create the circle of falsehoods.

This idea of not using Wikipedia introduces students to the academic dishonesty game. Priority one in writing a research paper is that it be a truthful reflection of your research, including limitations, accidents, mistakes, failures, etc, etc.