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There are antidepressants that specifically target this. It's worth talking to a well-trained geriatric psychiatrist about a trial of meds.
I've heard a geriatric specialist call this behavior 'sticky', and that sometimes a very low dose of medication eases the 'stickiness', and makes it easier to redirect the conversation.
Gentle touch - on her hand or arm - may be safer than touching her chest, if she is not accustomed to receiving touch from you.
Physical activity is good - going for a walk, if at all possible, does involve other parts of her brain and 'breaks up' that loop of recriminations.
Your acceptance of her sadness is a gift to her - imagine how often she has been told to let go of it, it's in the past, etc. You are a kind person.
I have a very elderly Aunt (100) who has mod/advanced dementia and when she gets into a loop or a delusion I will sometimes gently tap her on the chest with my finger. She then stops what she's saying or doing and looks at my hand then up to my face and I get her attention. Trying to get her attention by saying her name doesn't work, often not at all, but the tapping on her chest does.