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So reply on the level of the real issue, and slide right past the blame you feel being directed at you. Telling them you already showed them that ("so I can't be wrong, Mom/Dad -- YOU are the one with the memory problem here") doesn't address the real need. Tell them you will take a look at the camera and see what odd thing it's doing. Then present it with the new batteries and know you'll be changing batteries every time you see her. With my Dad and the doctor appointments, I now just say, "That's odd! Well, anyway, today you get to see Dr. (whomever -- there are so many) and that's always a fun day for you!"
The dementia only gets worse. My learning curve has been to keep reminding myself that this isn't a case where their abilities improve. And it isn't a case where I can do anything to restore Dad to an earlier, more independent state. In THIS MOMENT, I can find ways to respond to the thing he is really worried about. The blame is just his way of saying, "my world is still in control. This isn't my fault, because if it were, my world would be spinning out and that would put me over the edge." That's on my good days, of course. LOL. I guess today must be one of them, which is why you are getting this advice today. ;-) Sending all good vibes.
It is understandable why you would buy a camera. And perhaps at the time she started asking for one she might have been able to use it. At this point she apparently can't. That is sad for all of you. Now that you see how your mother reacts when you remind her and tell her she has forgotten it is probably time to adopt a different approach. This is one of the challenges of a progressive disease. We have to keep progressing with it. Perhaps it would work better now if you accept her reality. "Oh, I'm so sorry that dumb camera isn't working. Let me take it and try to get it fixed for you." Then get batteries for it and if she asks give it back to her, but don't expect better results. In general don't argue over who is "right" or whether something did or didn't happen in the recent past. Accept her, love her, comfort her. To best help her with her anger, try hard not to trigger the anger.
What you are doing now isn't working at this new level of memory loss. Make adjustments and by trial-and-error discover what works better. I suggest that instead of saying you are very sorry she doesn't remember, say you are very sorry that the camera doesn't work. Instead of arguing about how long she's had a cell phone, say, "Oh I thought I told you about that. I'm sorry. I guess I'm getting forgetful."
Best wishes to you as you struggle with this new level of reality in your mother's progressive disease.