Bizarre and unrealistic dreams are explained by the activation-synthesis theory, which posits that dreams are the brain's attempt to make sense of neural activities during REM sleep and form a state of protoconsciousness.
The theory that explains bizarre and unrealistic dreams is the activation-synthesis theory, developed by neuroscientist Alan Hobson. According to this theory, dreams are a result of our brain trying to make sense of neural activity during REM sleep. It suggests that dreams serve as a virtual reality that could aid us in wakefulness, with lucid dreams providing a unique insight into this process. This contrasts with Freud's ideas of manifest and latent content, where the former is the storyline of the dream, and the latter refers to the underlying meaning rooted in desires and fears.