Lucid Time!

I was playing Skyrim, but somehow also in the game as well. I had just started in a new save file and I was exploring the area to the north of Whiterun. I saw some ghosts/spectral characters and decided to stay away form them. I then started getting attacked by some bandits.

I remember there being some sort of above-ground labyrinth in the area outside of whiterun. In the game it was called 'old whiterun' because it was, in the game, the collapsed walls and foundations of the original city destroyed by a dragon. I didn't remember that area being in the game, but it was explained with the dream logic of "It's DLC".

I noticed my character's movement seemed sluggish. I was wearing heavy armor and I took it off, but that didnt make me faster. I had to drop it in order to go faster. So I was now fighting in my underwear. All I had was one sword, having just started a new game. I looted a bandit for a bow and arrow.

I went into the main city. I needed more supplies and had lots of gold that I had stolen from the bandits. Some of the citizens commented that I was not wearing clothing. (As they will sometimes do in the game.) I made new, better armor that wouldn't slow me as much. I then started to leave the city, but I saw that the spectral characters were now waiting for me outside.

I noticed that they were female and had tentacle like hair that seemed to move. I knew these enemies were very high level and didn't want to face them yet since this was a new file and I wasn't powerful yet.

...

I woke up, either into waking life or a lucid dream. I can't remember.

...

False awakening. My dad was saying that there was someone banging on the door trying to break in. I grabbed the knife I keep in my nightstand (this exists IWL) and ran downstairs. The door was closed. I heard the criminal speak to me telepathically. He said that we had to come out sometime.

I then remember he busted the door open. A Cerberus dog came storming in as the shadowy criminal retreated outside. The dog had once had three heads, but it appeared as though one of the side heads had been chopped off. This head had been troublesome for the owner because it was too friendly. It was on display in a museum somewhere. All that remained was a cartoony cross-section with a single white bone in the middle.

The remaining two heads were on long serpentine necks that could stretch six or eight feet. I only knew this because, while still standing in the doorway, one of the heads shot forward and devoured my dad whole.

I became semi lucid upon noticing the dog had multiple heads. I had a sense of control over the dog, but only while it was in the house. I also knew that my dad wasn't really gone and that somehow, the current situation had no bearing on reality.

"Bad dog! No eating my dad!" (or something similar)

*wimpers*

"Go! Shoo! Out!"

The dog ran off. I closed the door. I noticed the light had gone out in the foyer of my house. I then saw a duplicate of me hanging by the neck from the chain where the chandelier had been.

"Get out of this cage, or the consequences will be fatal!"

I could sense the dc was there to do what the dog had failed at: scaring me. Though in my semi lucidity, I was easily swayed to take his advice without questioning. At first, I thought he was referencing the house and the dog situation. (The dog was outside, and I somehow knew it would attack me agian if I tried to go out.) But I instead interpreted it as the dream was the cage, and decided to wake myself up instead.

I note upon waking that the situation of being trapped by the ghosts in the city of whiterun and being trapped in my house by the dog are similar.