I agree that consciousness is somewhat fluid.
That said, there are plenty of constants in life that do not move about between categories like dreams, hallucinations, and reality.
For example, my water and light bill comes in every month and has to be paid. It is in a rigid category, as Mack would say. Same for income taxes.
I wish utilities and taxes were a little more fluid. I would like to hallucinate them away.
I don't recall ever having hallucinated, but I am open to the possibility, particularly if something REALLY out of the ordinary happens.
I have one hallucination story from many decades ago.
I had a difficult relationship with a woman and ended it.
She was very angry with me and I thought there was a possibility she might try some sort of retaliation.
I lived several miles away from her but was absolutely certain I saw her stalking me in my neighborhood.
I later was able to verify beyond any doubt that it never happened—she had moved completely out of the area—it was just my paranoia on over-drive.
I would have easily passed a lie detector test that I had seen her at this exact spot at this time and date or that exact spot at that time or date.