Unmentioned, after commenting that Borges reviewed Dunne's work in 1940, however, is that the permanence of objects in time relates thematically to Jorge Luis Borges' own writing, recalling in particular The Garden of Forking Paths [1941]. I couldn't prove a causal connection, but it seems to cast a a commentary on Borges' post-1940 short stories.
Nabokov also played with the idea of reverie or dream-like states of consciousness. I've only had the pleasure to have read Pale Fire this far, but there is a careful blending of rational thought, creative (meta-)fiction, "dream logic" and actual insanity. In it, untangling what's real and and what's not left me with much the same sensation as trying to figure out whether something once happened to me years before or I just had a vivid dream.
Also very strongly to "Tlön, Uqbar, Orbis_Tertius" (1940), which explicitly mentions that topic, but maybe it's anachronistic (!) for your purposes here.
You’re entirely right.
I think that Borges and Hofstadter are writers whose work uniquely appeals to computer scientists.
In an interview (maybe reproduced in Strong Opinions?), Nabokov explains his theory that the origins of dreams are the visual patterns produced by the eye in darkness and interpreted by the sleeping brain.
H.G. Wells, C.S. Lewis, Tolkien, Yeats, Joyce, and Agatha Christie were fans. The Kindle version is available for $1.40.
There's also a (possibly apocryphal) quote by Nabokov ('All the Russia I need is with me, always with me. Literature, language and my own Russian childhood. I will never return.') that would be burnished by the inclusion of dreams of his long-lost homeland.