And I've more than once found that an anecdote I've been telling has been incorrect, precisely in a "melded memories" kind of way. It happened at this sort of gathering which were usually held for that reason so X was involved... and then finally look at the old pictures and there's no sign of X. It is literally the brain invoking "lossy compression" to make it all fit, just like certain web services that let you upload pictures without limit might reduce old ones, that hardly anyone ever looks at any more, to lower quality to limit storage bloat.
Of course any married man can confirm that this only applies to men. Women's memories are flawless. If they claim that they remember a conversation exactly, word for word, 20 years later, who's to prove them wrong?