Responses

Confabulation is a memory disturbance in which a person confuses imagined scenarios with actual memories with no intent to deceive. Most cases of confabulation are the result of dementia, brain damage, aneurism or Wernicke-Korsakoff syndrome (thiamine deficiency due to alcoholism). - https://psychcentral.com/encyclopedia/confabulation
You are right on track if this theory is correct.
i've read something similar to seme's problem on dr. frost.
where he believes the lies he made up without intention to deceive. confabulation? idk, but its interesting.