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Sell the house, she is 95, time to let it go, she is not going back there anyway.
I would still carry on with selling her house. At 95, I think it's pretty safe to say that she will not be going home again. Also likely that she will need the money to pay for her AL bills.
Somehow, you have to let her changing her mind and disagreeing with you roll off your back, etc.
You will probably get nowhere if you attempt to prove to her that she did agree. To be honest, even if you had her signature in triplicate - "I, mother, hereby authorise my child with power of attorney to sell my car on my behalf" - and showed it to her she would probably still insist that she had not agreed. Fact is, she is not happy that she is no longer a car owner/driver and she wishes to relieve her feelings about it.
So - suppose she hadn't agreed? "Too late, too late!" the cry - the car is sold. Did you get much for it? The money may do something to console her. Apologise for the misunderstanding (it's her misunderstanding, but it doesn't matter) and show her the cash. If she insists on investing it in another car... try delaying tactics.
And on to the bigger issue - so what's happening with the house?