I experience visual dreams the same way I described imagining the environment when I read. It's a completely different experience than seeing with my eyes open.
Interesting. So it sounds like you don't even dream visually.
I think for many people, even people with aphantasia, dreaming is akin to watching a movie or actually experiencing the event (myself included). I know the experience is immersive because it's the same feeling as watching a movie, but I can't recall it visually the same way after the fact, while I'm awake.
I experience visual dreams the same way I described imagining the environment when I read. It's a completely different experience than seeing with my eyes open.