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CONFABULATE

Definition:

[verb] unconsciously replace fact with fantasy in one's memory
[verb] talk socially without exchanging too much information; "the men were sitting in the cafe and shooting the breeze"
Synonyms: chew the fat, shoot the breeze, chat, confab, chitchat, chatter, chaffer, natter, gossip, jaw, claver, visit
[verb] have a conference in order to talk something over; "We conferred about a plan of action"
Synonyms: confer, confab, consult