I love the aesthetic and thematic feel of the game, you definitely succeeded on your goal to make it dreamy! At first I thought I understood the mechanics but later on I realized I didn't, and I was having trouble understanding how everything works even after reading your itch page. I ended up just sort of pressing buttons and guessing my way through, which sucked a little bit.
Props for adding skip level button and level select screen, I feel like these should be mandatory for game jam puzzle games it was so useful! I feel bad for not understanding the core mechanic, it clearly had much effort and thought go into it.