This seems likely to me. When we recall memories, we "fill in the gaps" during the recall process. For example, paraphrasing a quote because you can't recite

This seems likely to me. When we recall memories, we "fill in the gaps" during the recall process. For example, paraphrasing a quote because you can't recite it verbatim: you'll express the ideas and emotions important to you, include impactful words or phrases, but otherwise make it up. Dreams are like really fuzzy memories. So when we try to recall them, we have to add a lot. When a person talks about a dream they had, they're probably saying more about their mental state as they're recalling the dream than during the dream.