DS7 is definitely in this category and yes, it can be exhausting and frustrating. Even at 7 it is sometimes hard to tell what really happened (say at school that day) and what is a tale he is spinning. I spent some time being concerned that he couldn't tell the difference between reality and fantasy, but now I'm pretty sure he can, he's just messing with me. Yesterday, he absolutely insisted (to the point of tears) that he was not allowed to eat lunch at school. Everyone else ate lunch but he was not. While this would have explained his incredible grumpiness after school, I am fairly certain that the teacher did not starve him. It wasn't until I told him that I would have to call the teacher and principal because I can't allow them to mistreat my child by refusing him lunch that he backed off on the story.
Yes, exhausting!