In broad terms, We are awake or asleep, generally, if you see what We mean. However, for Us, the dreaming mechanism never gets switched off; it’s running all the time, eyes open or closed. We pay more or less attention to the information it produces, but the system never shuts down.
We are not always sure exactly which incoming thought has meaning. Is the idea We are weighing new, or a dream, or a dream’s perspective on something new or old? Dreams are multifaceted and seductive, but nobody would suppose they are foolproof proof of anything. Often they involve a connect-the-dots element, relating one idea to another.
It would be nice if consciousness was more comforting, but it isn’t entirely. Leastwise, not ours.