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It took me a long time to let it go. Now I enjoy moms fantastical tales and imagination and distortion of facts. I’m amazed at her demented mind and how real things are for her.
I too have become an expert fibber and although it pains me to agree with her when she wants me to, such as “will you move me back home tomorrow.”, I do it if it means no harm and makes her feel better.
I don't think there is anything wrong with correcting someone when they mix up memories, no matter what their age is.... all of us do it once in a while. If it is causing anger or grief though over something trivial then it isn't worth it, and if she does have dementia then it is all part of the disease and allowances have to be made.
Telling the truth is about you. You don't want to encouraging "lying" or to have a lie on your conscience or to feel uncomfortable.
Going along without correcting the inaccurate story is about the person telling the story. You don't want to make her uncomfortable, confused, or upset.
Take your pick ... do something for yourself, or something for your loved one.
Here is a truth to focus on: You love your mother and she is enjoying telling this story.