I am mildly bipolar and have horrible insomnia. I take ambien which I understand can cause hallucinations. But I have never experienced anything like you describe.

On the other hand, my mother has no bipolar issue but does have chronic insomnia. She also takes ambien and many times I have watched her conduct an entire understandable conversation with varuous people while in I would say a half dream state in which I can wake her by simply saying 'Mom" in just above a normal tone. Then she will tell me that she was talking to my father (who passed away years ago) or her own father or a friend and she felt like she was awake.

I hope this answers some part of your question.