My dreams are extremely dream-like and incoherent.When in one I typically don't have the mental presence to consider thoughts as complex as whether it's a dream. But on the rare occasions it does occur to me, it's pretty clear right away and then I try to control the dream a bit, which sometimes works.
That's not the case right now, so this is reality.
Not as immersive, but TV/Movies, songs, even books are like that too.