There are some therapists and psychologists who only ever want to use things that are evidence-based (such as CBT). I don't know of any evience about dream work, but my experience with myself and others is that dreams can carry a lot of weight in their symbolism. Personally, my dreams have helped me a lot. I actually did only a couple of dream work sessions with a therapist and those 2 sessions literally changed my life for the better, on a physical health level. I may not have proof that that was the reason but when a problem ceases to be a problem after over 10 years of physical pain, right after having those sessions, when medicine and self-suggestion and other approaches didn't work, I'm pretty convinced that was the reason. On the other hand, the dream work was only the beginning, I worked with some personal rituals she suggested after that to make the change.

Now, I don't think dream work is for everyone and at any stage - but if this dream is recurring and you believe it has meaning for you, I'm sure it can lead you to something, some place you need to get. I'm a little concerned about the intensity of it because dreams are messages from our unconscious, they speak in symbols and they don't shy away from what we would normally hide from ourselves - so I certainly hope your therapist knows how to hold and protect you in this process.

There will always be people (psychologists even) who will agree and others who will disagree. It's important to believe in your intuition about what can possibly work for you. After all, you won't know it till you've tried it.