I told Rosalyn a BS story about myself being a brave knight who rescued so-and-so and she now thinks -I- got beat up by slimes and rescued by a knight and even says another NPC told her about it. Eeeh?!
The AI isn't capable of keeping track of certain details. For instance, Rosalyn totally forgot the rules of liar's dice even though she's the one who told me what they were - we just rolled the dice and whoever had a better dice hand won. And then she asked me what I wanted to dare her to do even though she won and we'd agreed the winner's the one who issues the dare. (I got a hug out of it tho.)