Simple, pain-avoiding psychological denial

What it is

Munger's term for distorting reality when facing it would be too painful.

Example Ignoring a worrying diagnosis or a failing business.

Cognitive dissonance bias
Denial is one way to reduce dissonance when facts hurt.
Motivated reasoning bias
Denial is the extreme end of motivated reasoning.
Doubt-avoidance tendency bias
Both are reactions to uncomfortable realities: denying them or seizing on a quick answer.
Wishful thinking fallacy
Both bend beliefs toward comfort; denial refuses a painful fact, wishful thinking asserts a pleasant one.
Slothful induction fallacy
Refusing to accept the obvious conclusion is denial in an argument.