We see and hear what we expect to see and hear

Ale was giving Paco a hard time about being late when Nico jumped in saying he wasn't late. Ale clarified he was referring to Paco only but Nico insisted Ale had also referred to him. Truth is Ale had been super specific about Paco, even saying that while Paco got up first, he was often last to the car. I believe that Nico had heard what he expected to hear, i.e., his older brother giving him a hard time. And our memories are so unreliable that I am sure Nico remembered Ale saying his name. We construct our memories based on our expectations.

A related situation that I often see is people who believe they can "interpret" others expressions and intonations. "It is not what you said but how you said it". Maybe. But a more accurate saying might sometimes be "It is not what you said but what I expected you to say". So, think hard before jumping to conclusions. Don't try to read too much between the lines, as more often than not, it is you who is writing there, not the person speaking.