Hi, I have these dreams too. I am type 2 with reactive hypoglycaemia and I’m insulin resistant. I have no medication, just prevent a hypo every two hours. I weigh my food and count my carbs by eating eight meals a day. I wake up shouting out loud.
The main thing about your post is you are still getting overnight hypos.
I was exactly the same as you, I was told to eat frequently to prevent hypos. But the problem was, it didn't!
I found out that was too much and I had to find an alternative treatment.
I did!
A balance of protein, fats, foods that didn't trigger the hypos. Also, intermittent fasting and the most important thing was finding out which foods I was intolerant to.
And then avoiding them.
If you have any questions, please do ask.
Best wishes, it might stop those bad dreams.