Hello. "Create an event" and "add an event" are the same thing. I used two different terms, which was a silly thing to do.
Events must be placed in a memory. Memories can only hold a maximum number of events, and there's a maximum number of memories you can have. If you're told to create an event and there's no space to put it, you have to lose a whole memory. (So the character is forgetting things that used to be important as new things happen, and this is gradually changing who they are).
if a prompt doesn't tell you to create (or add) an event, then don't. You can still consider what happened with that prompt, but it's not a new thing to take up space in a memory.
Glad you've been enjoying the game.