How to handle interactions with people who are unaware of memory loss and early symptoms of Alzheimers?

I am 80 and caregiver for my wife, 82, who has several medical problems including Alzheimers. Early stage. When we are in a family gathering, she knows who people are, mostly, but she wants to be involved in conversations and she embarrasses the people who don't know her condition and embarrasses herself and me. She makes comments of people's appearance, obesity, clothing, and quickly points out why they are wrong if she disagrees. She can't remember what happened yesterday but recalls her childhood and how mistreated she was as a child. And on and on! I try to refuse invitations to socialize unless it is with very close family who is aware. If we go out to eat, she tries to visit with everyone close and with our waiter so we no longer go out to eat. I'm wondering how others manage these situations.