The difficult part with making dream sequences is that your prefrontal cortex has minimal activity when you're dreaming. That's the part of your brain that does the reasoning and logical decision-making. For me, anyway, that is why I can never lucid dream; when you're asleep, your brain usually does not have the capacity to know that the fantastical things happening in front of you are not real and have no consequences. You take things at face value. It's a weird kind of lizard brain that's difficult to emulate in reality, maybe except if you're lightheaded.
So, to write the most accurate dream sequence possible, you have to deactivate your reader's prefrontal cortex. But that would probably kill them.
The next best thing is to write a dream in a way that borders on what could be realistic and feasible, given your setting, while also having elements that give your readers moments to question themselves and to think that something might be up. In a dream, your brain kinda picks up on it, in a dream, but it usually can't put two-and-two together. Set something up that is just plausible enough where a few discrepancies can make it seem uncanny. Not only does your protagonist in the dream have to be unsure if it's reality, your readers should also be equally unsure if it's reality, if it's first person or third person limited.
That is how I would do a dream, anyway.