Why does Don Quixote believe inns are castles?

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Don Quixote believes that inns are castles because his mind has been "bemused" and overwhelmed by his obsessive reading of [chivalric romances]. These books, which were in literary vogue during the 17th century, depicted a world of knights-errant, heroic quests, and grand fortresses.123

As an aging country gentleman who decides to become a knight-errant himself, Don Quixote attempts to impose the idealized, adventurous reality of these stories onto the mundane Spanish countryside. Consequently, he suffers from delusions of grandeur that cause him to misinterpret ordinary locations and objects—such as mistaking an inn for a castle or a field of windmills for giants—to fit the narrative of the chivalric life he is determined to lead.13