People often misrepresent external events because they are attempting to justify or render their inner response understandable. That is fairly natural. To try and convey external events in a way that evokes a similar emotional experience in the listener.

Maybe that was what your therapist was getting at?

I quite like the line that what is remembered is important not for what it says about external reality (so much) but for what it says about the clients internal experience. Often people confuse internal experience with external reality (e.g., 'I felt afraid' becomes 'they were trying to hurt me - like when they did xxx'). I think that happens as a part of working through ones internal experience. Takes a while before people come to really truely believe that their internal experience was justified NO MATTER WHAT the external facts were...