confabulate

Verb
  1. Unconsciously replace fact with fantasy in one's memory (synset 201638429)
  2. Talk socially without exchanging too much information (synset 201040538)
    "the men were sitting in the cafe and shooting the breeze"
  3. Have a conference in order to talk something over (synset 200878196)
    "We conferred about a plan of action"

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