I can understand your opinion, but personally, me being sort of a geek, I like to be challenged to find the right formal solution without being guided by routines of conventional context. It's really a test if you master all the rules of "mathematical" deduction rather than rely on some automated associations. But it's a matter of taste - and I agree that not too many examples should be surreal or quirky...
PS: it is also nice to come up with some contrived context afterwards: Your friend speaks while sleeping, and you look her words up in a book of dream symbols... - Why just always asking for directions to the central station? :-)
It doesn't make contextual sense to you, but it certainly makes grammatical and structural sense, and quite possibly in a certain scenario -- what that scenario is doesn't matter right now. You are focusing too much on the verbs being used and how they go together -- the point is you've exercised how to use 'dreams' and 'search'.
If you are truly learning the language for speaking sake, you will be able to construct your own sentences as opposed to just trying to memorize the examples from Duolingo.
From what I understand, she is supposed to search but is not, "she's dreaming" while the other one is actually searching. I don't know if it is what the authors meant but in French we say that someone is dreaming when he's lost in his thoughts when he is supposed to do some other tasks.