I think you're conflating "consciousness" and "free will"? Most of what you are explaining is the question of free will to make decisions and take action.
The consciousness illusion is a different focus, as to whether our experience of alertness, thought, and perception even has the temporal and causal elements we tend to assume. This problem has many layers.
One example is the visual system and the illusion of a constantly perceived visual field that is really a synthesized memory of many smaller visual samples from the frequent saccades of our eyes. We don't see our own eye movement that is happening We also don't usually see our retinal nerve blindspot nor recognize the inherent asynchrony of some of our different senses. Our consciousness experience fuses all this together and well known perceptual illusions and magic tricks generally exploit the gaps in this process.
But there are many other layers, such as full blown hallucination where the mind constructs sensory perceptions that do not match our physical stimuli. There are many more subtle layers in between. Delusional beliefs can be felt as "fact" that suppresses internalization of other contradictory perceptions.
More subtly, people often post-rationalize causal relationships between social experiences, emotional state, and actions in ways that are inaccurate. Psychologists talk about "cognitive distortion" as an overall concept for this fuzzy area where people's internal state biases their perception and belief derived from physical stimuli.