3yo insisting she's happy while sobbing

My daughter is 3 (4 in May) and has recently when she gets upset over something and I try to say "I can see you're upset/angry/frustrated etc." she starts screaming that she's happy while sobbing.

She's always hated me trying to validate her feelings, always batted me away if I try and give her a hug when she's like that but now this. I have no idea how to navigate it. I've tried saying it's ok to be upset etc but that just makes her scream that she's happy more.

Is this normal? She's a really sweet, sensitive kid and I want to help her but just totally lost as to how.