It seems to be getting worse the past year and my experience recently is mainly on the phone with her. At any opportunity to "take-over" the converstation she does but it's the topic realigned to her own fictional narrative with people it is unclear she ever met, with minute details that seem impossible anyone could remember. So it seems she is making it all up spontaneously and will go on for 10-20 minutes without stop unless she is strongly interrupted. As if she is in a trance or dreaming.
I subtley tried to "call her bluff" on one extreme example and she became very angry and refused to understand why she was being questioned. In this case, other people also questioned her.
But other than this she seems mentailly fine and I can find no information similar to this. She does not hallucinate or talk to imaginary people as far as I know. Any ideas?