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You focus on all 3 without divulging all the details to your manager about C. The fact that your manager doesn't acknowledge C is concerning—most likely, either office politics are at play, or your manager is insecure. Regardless, stay on good terms with your manager, sympathize with their perspective without outright agreeing to it, and don't unnecessarily divulge what's going on or what exactly you're doing. So if your involvement with C comes up in a conversation with your manager, just share high-level info or even understate your involvement to make them feel better, name drop those who want you to stay involved if necessary, and make them feel better/secure that you're still giving plenty of time and effort to A and B.
My old boss was like this—he was clueless as to how things actually worked, complainy, and very arrogant. I'd just nod my head in our 1:1s and offline, I kept doing my thing (supporting other workstreams/people) while still working to prioritize things he felt were important
It's a good idea to proceed with caution. Communicate with HQ about C, and make sure to do it in a way that creates a record. In other words, avoid conversations in favor of emails and communication that can be memorialized. And work on C and if there's any issue with your manager, you'll have documentary proof that you've also been directed to work on C. The ideal situation would be to get HQ to back off on having you deal with C, but that may not be achievable or feasible.
Whatever you choose to do in this situation, try to get everything in writing and document everything about this, obviously I think this directive by him could be detrimental to you in the long run.
It appears that you seek validation to take action. You dislike your manager and refuse to listen to them. Don’t listen to the other comment; it was foolish. The key to remember is survival with honor. If you dislike working for your manager, start searching for another position. In the meantime, comply with their instructions. You must decide whether this issue is significant enough for you to escalate to your superior. Remember, they may be directed by their superior to do what they’re telling you. Your management has access to information that you don’t. I’m saying all this without knowing much. I’m simply interpreting the situation. You’re seeking validation that you have a poor manager without providing the full context. If you dislike working there, then find another job.
Survival with honor is a good term. I like my manager, despite his abrasiveness, for there is much I can continue to learn.
That said, I put up the question because the situation became confusing. I do not wish to end the year where my performance and bonus is impacted because I was not able to produce “C” even when my manager tells me that I should only focus on “A” and “B”.