The question here is whether this usually ineffective drug is helping you any. If it isn't, there's no reason to suffer the side effects, as it's not the right med for you. It's not the right med for hardly anyone, as it has never done well in clinical trials. If it's helping you a lot, then the side effects might be worth it. Most of the meds used for anxiety cause sedation in most people who take them. Sometimes this goes away with time, sometimes you just get used to it, sometimes it doesn't go away. It's an individual thing, and the older you are, usually the harder it is to overcome this side effect. Something I found that helped with sedation was exercise -- at first, it was made more difficult, but over time I pushed through the sedation. Can't say much about the dreams, I like dreams, even weird ones.
You dream every night but most are forgotten when you wake, so unless the dreams are nightmares that keep you awake in terror, then it doesn't seem like a problem. most side effects disappear with time so maybe this will too - if it even is a side effect.