Scenario 1: Irvine is lying.
While I don’t approve of liars, the story Irvine tells could work into his overall character arc. Irvine seems to be a bit of an insecure braggart who has abandonment issues. Perhaps he made up this story to feel apart of the group after choking. Maybe he just wants friends? Whatever the case, this manipulative story would somehow convince them. Irvine would have taken advantage of their trust all to build himself up.
Scenario 2: They think Irvine is lying.
The orphanage scene wouldn’t sound believable to people suffering memory loss upon first hearing. The odds them raised in the same orphanage, would be too much for them to grasp.
As far as they know, Irvine would be spinning a tale. But he would actually be completely serious. This would explain why he didn’t want to tell them right away because he feared they wouldn’t believe him. As he delves into his nostalgic speech, they’d look at him and each other with naked suspicion.
After finishing his story, they’d openly mock the idea of them all living together as children in the same orphanage.
He’d laugh along too, tragically embarrassed at the prospect of being among friends who forgot about what they all shared.
Maybe Squall would have an inner monologue about Irvine’s story:
“Maybe I should reflect on my childhood my sensation my words and emotions. Time won’t wait, no matter how hard you hold on it escapes you and…”
“Squall, are you coming?”