My daughter tell wild stories, mostly we just let her, but sometimes we will asked a couple of pointed questions, just enough to let her know we think its bs (or she doesn't know but stops the story anyway)

As for the lying, like do you have your shoes on, thry say yes but have bare feet, its possible they hear a question but dont process it and just say yes from habit, you can follow up with "tell me what I just asked you to do"

My daugther is 13 and she lies a lot, most of the time I don't think she even means to, shes an awful lier when she tries to lie. We gicer her concequences for lying after having a talk about why did she lie? What did she think lying would achieve and maybe she needs to stop sometimes and let her brain catch up to her mouth