While Wolfe could feel that something was wrong, his mana didn't connect to the things around him in the nightmare, he couldn't immediately pull himself out.
Instead, he was forced to relive what should have been the most terrifying moments of his life one after another. If he were fully immersed, it would have felt like he was living them again, and powerless to change anything, but in this case, he knew that it wasn't real, and that he needed to get the others out before it caused a mental trauma.
He felt something bump into him, and realized that they were moving in their unconscious state. That was enough to pull Wolfe back to semi consciousness, and when he saw through the illusion, he realized that they were being led to some sort of auditorium full of monstrosities by shadowy magic guiding their steps.
