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When a person with Alzheimer's or other dementia hallucinates, he or she may see, hear, smell, taste or feel something that isn't there. Some hallucinations may be frightening, while others may involve ordinary visions of people, situations or objects from the past.
Hallucinations are false perceptions of objects or events involving the senses. These false perceptions are caused by changes within the brain that result from Alzheimer's, usually in the later stages of the disease. The person may see the face of a former friend in a curtain or may see insects crawling on his or her hand. In other cases, a person may hear someone talking and may even engage in conversation with the imagined person.
Alzheimer's and other dementias are not the only cause of hallucinations. Other causes include:
Schizophrenia
Physical problems, such as kidney or bladder infections, dehydration, intense pain, or alcohol or drug abuse
Eyesight or hearing problems
Medications
Here is a link to the rest of the article: https://www.alz.org/help-support/caregiving/stages-behaviors/hallucinations
When a brain is diseased, many illogical things begin to happen. I have no knowledge of the afflictions you mention, nor do I know if there is a connection between them and dementia. I do know that what your grandmother is doing, however, is a normal part of the dementia she's afflicted with. The behavior can wax & wane, too, from one day to the next.
Wishing you the best!