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Never made up a situation but often embellish and exaggerate because the interviewers are way too keen to hear what they want to hear.
More commonly (but still uncommonly), I embellish. I have completely made something up a few times when asked for an example of a situation that doesn't ring any bells. I wouldn't lie in a way that inflated my qualifications or relevant experience, but if I am drawing a total blank on something like, "Tell me about a time that you had a heated discussion with a superior," I might just make something up.
I try not to… because I generally have a difficult time making up a story on the fly that makes sense and doesn’t have plot holes.
Honestly sometimes I just tell them I’ve never been in this situation, but in general here’s my approach / what I would do in this situation blah blah blah
Mentor
Yuppp
Mentor
Just did it yesterday and I could tell my interviewers believed every second of it
There will always be scenarios that you haven’t experienced. It never hurts to embellish or use a hypothetical situation to answer.