There's a word I remember looking up but can't remember. Something like:
When someone says something that's insulting but when you call them out on it, they pretend they don't know what was said was insulting. Instead, they argue that they meant it in a different context when they really didn't.
For example:
A: "Wow he's smart"
B: "What do you mean he's smart?"
A: "What? I meant they're very intelligent."
Best Answer
I think dissimulate would work:
In your example A is dissimulating. or alternatively you could use the synonym in the definition, A is dissembling.
But if you are looking for an adjective rather than a verb, you could say the person is disingenous -- in the sense of falsely or hypocritically ingenuous.