While I'm sure neither novel is based on reality, Jennifer Weiner's new sequel to Good in Bed is sort of similar to what you're thinking of.
-GIB depicts Cannie giving birth to Joy.
-Between GIB and its sequel, Cannie writes a book loosely based on her own life, including the birth of Joy. The book she writes is fairly similar to GIB itself.
-In the sequel (the name of which I can't remember), Joy reads the book Cannie wrote and is traumatized because she thinks it's how things really happened (but the reader knows it's fictionalized because the reader read GIB).
Sorry, I know that was way too much effort explaining the vaguely-relevant plot of a mediocre novel in a comment to a day-old post.
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