I don't think it is that unusual to have hallucinations mix with our dreams during psychotic episodes. Hallucinations and dreams have a close connection. I recall Jung describing a schizophrenic as living in a waking dream.
The last episode that I went through, I had some really strange vivid dreams. Later I learned about sleep paralysis and having hallucinations both visual and auditory associate with those SP experiences. I think those were related to the strange vivid dreams I had during my last episode.