Something that always buggered me was Sue's response to Paulo stating that her play sucked, and that even David said it sucked.
Her response was "You BELIEVE him?!"
Which really isn't a response at all. She was focused on Paulo believing David about the play being bad, despite him saying it sucked right out the gate.
And so this new dialogue in Participation Trophy, I believe, ties into that. He says "Your play sucked" first, followed by "Even David says so." This establishes that HE thought the play was bad independently of what David thought, and she completely ignored it. She directs her frustration at David instead of HIM, because she doesn't want to think about PAULO not liking the play. It has to be someone else's fault. She genuinely believes Paulo couldn't/ wouldn't have thought the play was bad unless David told him to think that. She doesn't want to believe Paulo thinks her play was bad.
Plus her whole side tangent over Paulo, someone who was not at all involved in the scene she's walking away from, shows how rent free he lives in her head. I dunno guys, lookin' pretty suspicious.