I agree with the others who said that this child and family is a HUGE risk and liability to you and to your business. This sort of lying and fantasizing is not harmless and it's not going to get better, only worse. The fact that dcmom believes her 3 year old without having even discussed it with you, is even more worrisome.
This family is not worth this amount of risk to you and it's her parents' responsibility to figure it out and fix the situation with this child, AFTER they have left your care. You need to protect yourself.
These stories almost always escalate and end with increasingly more damaging lies that can cost a provider her reputation, her business, her own children, or even her freedom. I would terminate immediately.

































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