Ever hear the expression that you should let sleeping dogs lay
All animals dream. I had dogs who did that. I have cats who make noises and move around in their sleep. My wife curses people out in her sleep. I find it all very amusing. I don't see why it is a problem is no one gets hurt.
Dogs will growl, snarl, bark, howl, and twitch while dreaming. All totally normal. How do you know these are horrible dreams? Can you read the dog's mind?.
She could be fighting off killer squirrels in her sleep!
Dogs make all sorts of noises in their sleep, they whine, they howl, they moan, they growl and bark .... they twitch, they run in their sleep - it's all quite entertaining to watch.
Let sleeping dogs lie --- and if you choose to try to wake the dog, do it by calling her name - not by nudging or touching her. You never know what a dog may be dreaming about, and if you startle a dog awake, you could get bit in the process.