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...also called face blindness, is a disorder of face perception where the ability to recognize faces is impaired, while other aspects of visual processing (e.g., object discrimination) and intellectual functioning (e.g., decision making) remain intact. The term originally referred to a condition following acute brain damage (acquired prosopagnosia), but a congenital or developmental form of the disorder also exists, which may affect up to 2.5% of the population.
Gotta confess ..... this happens with the people from my neighborhood all the time. I recognize maybe 5 families out of the dozens that live here. THEY all recognize me and say 'hi' to me by name in the store and on the sidewalk when I walk the dog. BUT I have no clue who they are or which houses they live in. I don't care so I don't bother to remember. So I just say 'hi' back and answer their polite questions about how the dog is etc.
Kinda makes you wonder who keeps bringing you up in conversations.