I would agree. From the OP's description it doesn't seem like grandma is suffering dementia. It sounds more likely that she's just a judgmental b**ch. As a gay man who is now 50 I'm lucky that my parents had decided that religion wasn't their thing. I was raised an atheist and after looking at all the harm that religion does I am forever grateful about that. However, my mother was still super conservative socially. She was ok with the idea of gay and lesbian people but not with her unmarried child and their SO sleeping in the same bed in her house. She passed away well before I was able to marry my SO legally. If we could have married she would have been fine with us sleeping together in her home. How silly.