Three levels in Advaita Vedanta
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They are ‘Pratibhasika’, ‘Vyavaharika’ and ‘Paramarthika’.
Of these Pratibhasika is the most unreal.
Dream is in Pratibhasika level. In dream we perceive different things.
But in a strict sense, dream is not completely unreal because for things, which we sees, in dream, have - (external substratum in the phenomenal world}.