Yes. To add to what @A myALZteam Member describes so well, it's called Anosognosia: Lack of Insight / the inability to perceive the reality of one's own condition.
Patients who are earlier in the disease process may have some insight into their cognitive decline (which is often heartbreaking for the caregiver); but over time, the patient may forget their diagnosis (if they knew it); may not be aware of the impact that their Alzheimer's/Dementia symptoms have on their day-to-day life; and may lack the awareness to understand that they cannot manage independently.
Interestingly, denial sometimes lessens over time, while the lack of insight tends to get worse -- so to the caregivers, it may just feel the same, like there's no change at all.
As folks have said it is not uncommon. Sometimes people are frightened by thinking about something being wrong with them. It can be overwhelming and people may react with anger and agitation. Sometimes it goes away.
Yes, definitely. There is even a term for it that starts with "a" but sorry, I can't remember what it is. Definitely in the early and moderate stages. And it is hard for them to admit what is happening, as it is for us. You can understand. And with their capacity, it is difficult for them to be a judge of what the are and are not capable of. Sort of like asking a drunk person to evaluate how drunk they are, not going to be accurate. It's a balancing act not to discourage them but also keep them safe.