My mother passed at 102. Her years after around 95 were tough.
We had her in a home and since I lived 200 miles away I couldn’t see her as often as I wanted. But a few observations. Very much in line with yours.
Don’t correct them when they digress back to childhood friends and family.
The other members of the family that were closer to her proximity and visited more often would often correct her as to who they were.
My mom used to call me by her brother’s name. I let her.
They remember childhood like it was yesterday.
JMHO.. They lose the ability to discern dreams from reality. They dream about ‘the old days’ and when they awake are still in that dream.
My brother is about 6’3” and weighs about 250...you should have seen his expression when our mother said to him, “You’re a pretty girl.”