Absolutely. They lied. Whether intentionally or unintentionally, we'll probably know. But even at the most charitable, they circulated intelligence that they knew to be unreliable while concealing that unreliability.
An annoying thing about the word "lie" is that it is defined in some definitions as "an assertion of something known or believed by the speaker or writer to be untrue with intent to deceive". By this definition it is impossible to unintentionally lie. Another definition of lie is "an untrue or inaccurate statement that may or may not be believed true by the speaker or writer". You'll find both definitions at [1]. This makes this discussion about what Colin Powell said difficult, because as you point out, it's hard to know to what extent Powell actually knew for sure that he was making false statements about Iraq, given the assessment of foot soldiers at the CIA and the intent of Saddam to mislead the West for his own benefit.
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