I will make a response later today because my schedule filled up for no reason, explaining why low 1-C for the dream world like Ogbuna had initially suggested should still be valid, because I don’t consider “it just isn’t transcendental“ as a refute especially when it’s the same thing thats been said for a couple years.
I'd give more of a refute if good arguments existed. But they don't. Every single things brought up in the OP is wrong.
"The Dream World is called a mental world."
But the Dream World itself is physical like I brought up countless times. People going inside that world can get hurt physically. Stuff brought from the Dream World can interact with others normally as well. It's not part of the "Mental Layer" described elsewhere.
"The Mental Layer transcends the Physical Layer"
Nothing indicates that. The world being divided into layers does not mean each layer transcends each other. Especially not in this case. This simply indicates that non-physical, mental effects aren't affected by the laws of physics and that they're able to affect the physical world to some degree. That's no different than any other cases of mental entities existing in other verses, it's just described differently.
"The Dream World controls reality"
An utterly out of context statement. Nevermind the fact that affecting reality doesn't mean you exist on a higher plane, the dream world's effects on reality simply refer to nightmares or other indirect effects. You will be affected by what you dream about. That's what it is about. That doesn't mean the Dream World controls all of physical reality.
"The Dream World exists beyond the physical world"
That's probably the worst argument out of the bunch. Again, nevermind the fact that "beyond" means "further than" and not anything relating to transcendence by default, Maribel's statement
refers to Otherworlds in general. She is literally only talking about how Otherworlds like Gensokyo, Hell, the Dream World, Heaven, etc., exist outside of the normal world. Nothing at all about transcendence. In fact in that entire story moment, she talks mainly about Gensokyo. Are you all implying that Gensokyo, including every single fairy and youkai inside of it, transcends the physical world simply because Maribel says Gensokyo is outside of Earth's world? I sure hope not.
Reading anything about this scan other than the quoted dialogue would reveal how wrong this is. How was this even remotely taken seriously?
"The Dream World contains the Infinite Netherworld"
That is true, yes. But that's already taken into account on the profiles. It just means each individual dreams in the Netherworld can be infinite. But like I said before, this can only result in Low 1-C or whatever if you think the Dream World is so big and infinite that even an infinite location would be a finite part of it. The latter of which you have given no evidence of. You simply stated it. Being part of something doesn't mean you're a finite part of it, if you're infinite in size.
Infinity means that you never truly run out of space. You can't fill an infinitely wide space (The Dream World) with an infinitely wide object (The Netherworld).
Even if all of this was true, it would still only truly scale to Yukari. Doremy has no feats of affecting or destroying the entire Dream World, only individual dreams. And thus, it would be an outlier.
None of these arguments are remotely enough for the Dream World to be Low 1-C.