Hi
As most people (so I am told) dream in B&W this filter does the same.
Try adding a Color adjustments effect to reduce the brightness. (Initial settings should be 0;0;1) This may have some effect.
You can add colour if you place the dream sequence on Track 2 and then add a green screen effect to the white component. Beneath this clip on Track 1 add a blank image (say,pale green) and set a Hue Cycle effect to it. Worth a try. (Note a white or black blank won't hue cycle.)
Redwood adds a darker shade to the black areas. Use keyframes to make things vary.
Try Orchid Light filter as well. That gives a sepia tone to the dream clip. Doesn't look bad.
Aqua can also add color. Use keyframes to vary it.
If you play around with the color effects you should be able to find something that works reasonably.
Nat