Things like that have definitely happened to me before, but I wouldn't say that it's common. It doubt it would happen to me if the conversation beforehand had been about clothing, for instance. Although it could have if I hadn't been paying attention to the conversation.
When it does happen I pause but then will generally vocalize something like.. "? What are you talking about, you aren't making any sense" etc. Then I realize it or they tell me and I'm like 'duh, that was stupid', and I laugh at myself and move on.
At some point in my life I learned that it's generally not embarrassing to not understand or know something, and that if someone wants to talk to me about something, I interrupt them and get them to clarify what they're talking about. People around me talk about movies and actors, actresses, pop culture etc a lot, things I don't retain information about because it's not very interesting to me, so I get them to explain things more to me quite often.
But I'm also in a place where I don't have to ask for explanations in everyday conversation. I don't get mixed up with homophones much and I don't think I often get mixed up with things like 'mozarella sticks' vs 'cheese sticks'. One of the reasons I probably don't get mixed up with those things is because I'm the person who's constantly calling one thing another thing because I cannot think of the correct word for it, so I mentally grab at any similar word and throw it into my speech before I also forget the entirety of what I was saying (which also happens fairly often.) The more explicit a name is for something, the less likely I'll be able to find it and use it, and if I do find it it will likely take time such that my sentence is interrupted.
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Not autistic, I think
Prone to depression
Have celiac disease
Poor motivation