Plot hole: "Dorothy Michaels" does not exist, but suddenly becomes famous. It is simply not feasible that nobody looks into her background! Not one single print or television reporter is interested in her life story? Nobody has ever wondered where she came from, has checked into what other roles she had played, or has expressed interest in her personal life? That's impossible.
Plot hole: Since "Dorothy Michaels" does not exist, she will not have a Social Security number. Even with her agent acting as a go-between, the television production company, her employers, would have to have this for their records. Supplying a false Social Security number is a very serious offense (and is instantly detectable), as is employing someone without one.
Continuity mistake: When Terri Garrett comes to the apartment and Michael is in makeup he leaves his wig, earrings, shoes and purse in the dining room. Bill Murray picks up the shoes and purse, but not the wig or earrings. He places those items in the bedroom, however when he returns the wig is gone, and only the earrings remain, which he disposes of in a jar.
Continuity mistake: When Michael says he finds the blonde actress on the balcony interesting and wants to make love to her, and she splashes her drink in his face, the drink gets on the guy behind Michael. When Michael wipes his face off the man's coat, his coat is dry again.
Continuity mistake: After the first day of shooting, Jeff is seating next to a phone holding a pencil, which disappears/ reappears randomly in his hand between shots.
Continuity mistake: During Michael's first discussion with his agent about not finding a job, the agent puts his pen on the notepad in front. The pen disappears/appears randomly depending on the angle.
Continuity mistake: At the dinner table when everyone's at the house in upstate NY, the piano in the background is a console model but later as Tootsie plays the piano, it's become an old upright.
Answer: What she said was a fantasy - big difference between saying that in conversation and actually having it said to her.
Thank you.