This is really interesting but really hard. I got stuck on a puzzle and couldn't figure out how to progress or how to use the dream and reality world to my advantage. But this is a really good game jam game and I hope you continue working on it. I also tried to make a puzzle game and am impressed at how you designed the puzzles.
I agree with some of the other comments about the text in the first room being hard to read but other than that the controls we good, the art style and music were fantastic. Keep up the good work and look forward to seeing what you make in future jams!