A.G.Professor Emeritus, Bio-Sophistry
Your liar likely suffers from NPD (narcissistic personality disorder). There are other possibilities, but she certainly suffers from a serious mental condition.
To an NPD sufferer, other people are pieces on a chess board where the goal is their own self-aggrandizement. You can prove this to yourself by trying to talk to her about an achievement of your own. Your liar may deny it and immediately riff into her own (probably imaginary) superior achievements ors he will be completely disinterested. You are not a person to her. You are only an object with a shiny reflective surface that can potentially reflect back the self-aggrandizing nonsense she spews. She will listen only to the extent it is necessary to gain your attention.
NPD sufferers are not just pathetic, some can be dangerous manipulators. When they feel slighted, they do not respond equally. If you publicly reject the liar's self-aggrandizement, the gloves come off and the liar can start manipulating others for the purpose of hurting you. If you suffer a serious loss such as a job, a partner or even your freedom that is a victory to the liar, something she will feel proud of--she has validated her own existence by crushing your threat. So don't get on her bad side, and under no circumstances allow her to acquire a position of authority over you at work.
That being said, you don't have to play her silly game. Stay away as much as possible. If she starts her crap, look bored, start texting, etc. When she stops for breath, say in a bored tone, "that's nice" without making eye contact. Deny her the attention she wants without confronting her lies. As soon as she realizes she won't get the attention she seeks from you she will look elsewhere.
As you may have noticed when you confront the improbability of her stories,she is secretly delighted (becauseshe is getting attention from you). That is part of her game: if you believe her stories she wins, if you argue against her stories she wins. The only way for you to win is not to play.