When you say fading to black, is the game actually freezing up, or are you just sleeping through the night without a dream happening?
I do seem to recall that some of the later dreams are dependent on plot progress (and for one of them, your character class), so if you're doing this while just idling in town or training skills, without actually completing any objectives or the like, you may not be eligible for them yet.
OP means the game freezing.
It happens to me occasionally, but not consistently enough for me to help.
The game freezes except for the music. So far, this has only happened during the dream in which the hero kisses Erana, and it happens every time, no matter whether it's in the garden or at the staff. It happens whether I'm at normal speed or whether I've sped it up with Alt+F12
As far as progress is concerned, pretty much the only things left for me to do are to rescue Tanya and then the endgame.