So on what we have heard, dory has short term memory loss, known as amnesia, but there are two parts to this, retrograde and anterograde, dory has anterograde, which stops her from creating new memories, however her old ones stays intact, this said she can not remember the specifics, she might remember her bed room from childhood but not who she talked to 15 minutes ago, this said she can remember recent events like her moto (just keep swimming) using mnemonic devices, and reading comes from her past memories skills, reasons for her faking is back, way way back, Ancient Rome, Claudius was the emperor of Rome from 41 - 54 A.D. He had a limp and a slight dethness, Years before that, when his father locked him away and his father was emperor, the kingdom was attacked, and probably other then the women, Claudius was spared because he was not a threat to the enemies, after the people came back to him since he was the son, he had a great political skill and became the emperor, his disabilities made him survive and have the kingdom. That is one reason dory might be faking it but let me continue, best example of anterograde amnesia was H.M., Henry Gustav Molaison has short term memory loss, each day he was given the same puzzle and when asked if he remembers, he would not remember, but doing the puzzle each day, he became faster, and faster at doing it, unknowing that he has done it before, that is an example of the mnemonic, having the skill, but not remembering doing it, but dory knew how to read before she lost her memory, and forgetting Marlin was with her and Nemo's name constantly, forgetting she was chased by the shark, all is short term memory loss, her remembering the street address over and over again was just her mnemonic device, wow, I guess I was wrong, she really does have short term Memory loss, well *sigh* (hears voice) hey I seen a boat, hey I seen a boat, hey I seen a boat, seen a boat, a boat, boat, boat, how does dory remember seeing the boat but not remember Marlin was with her, how does she remember this the whole movie, unless, she is a lie, obviously this theory was not mine, I am smart but I don't have the time to do all this research, so here is the actually video, I watch these for enjoyment
https://m.youtube.com/watch?v=T3b8_dQMeWw