The World of Dreams

Not to be confused with Mario's Dream.

The World of Dreams is an anomalous area found in some personalized copies of Super Mario 64. It takes the appearance of a large area with several parts of a castle-like building being scattered around, and strangely, several paintings of Princess Peach have been reported to be scattered around the vicinity of the area. It's access point is inconsistent, though some have reported accessing it by jumping into a Princess Peach painting.

Geography
The World of Dreams is described as a large grassy or sky area filled with several assets from Princess Peach's Castle, mainly simply being inaccessible structures dotted around the area, or pillars and similar random objects that can be used to explore the level. This area is known for the strange, flat walls scattered around the area with a painting of Princess Peach on them that appear to go unexplained. No stars have been reported in this area, though a strange segment known as The Pathway has been reported to appear by reaching some top point of the area, commonly through the use of the Wing Cap.

The Pathway
The Pathway is reportedly a large dark area with a long path going through it with several of the strange Princess Peach structures dotted around it. The path usually does not lead to anything, making it's purpose a mystery, though some have reported it can lead to another level or a key to a castle floor.

Theorizing
Some have theorized that the World of Dreams is meant to represent the human's subconscious. If a human brain is simulated via Wet-Dry World, the World of Dreams may simulate dreams due to the level's strange and abstract nature, with the Pathway potentially representing a nightmare due to it's dark and empty appearance. This appears to apply to the darker theories related to the Personalization A.I.

Others have theorized that the World of Dreams is simply meant to represent Mario's subconscious, which could explain the several Princess Peach paintings while maintaining the previous theory's explanation of the mysterious nature of the area. The Pathway could represent Mario's fears of something happening to Princess Peach, due to the dark appearance and several Princess Peach paintings, and facing his fears and walking down the path would allow Mario to obtain whatever is at the end of the path.

Bob's Documentation
The Youtuber known as Bob has documented the World of Dreams in some of their videos. The first appearance of the World of Dreams was in their video on an area they refer to as Floor 3B, appearing when they enter a hole in the floor next to a Princess Peach painting, and the footage cuts to black. A screenshot of the Pathway in the World of Dreams appears, and text appears saying "Go to the world of dreams." and "Find the key to the 4th". It is believed that "the 4th" being referred to is the 4th Floor.

The next video related to the World of Dreams is simply titled "Dreams", and it has another screenshot of the Pathway as music ripped from either the Pathway or the main area plays. This song is not seen in Bob's main video on the World of Dreams, so it is not known which area this refers to. In the description, the user Wasteofblood is credited, likely for ripping the music from Bob's copy, similarly to some other videos uploaded by Bob documenting anomalous music tracks.

The third video where the World of Dreams appears is a video of Bob actually exploring the area in it's grassy manifestation. Before the footage begins, a screenshot of the Pathway appears alongside the text "WELCOME BACK". Bob then appears in part of a building, and enters the main part of the World of Dreams and explores a bit. Eventually, the video glitches out and text appears that says "GO TO THE TOP". Bob finds a Wing Cap and uses it to fly to a top of a tower in the level, and is warped to the Pathway. They walk down the path, before eventually finding Luigi, though the footage cuts out and text appears saying "HE WAS NOT REAL" as a textureless Luigi model appears behind it, before both disappear and the video ends shortly after.