I think there is a version of the story in which Miyo's dreams could help her piece together her mother's backstory while simultaneously strengthening the bond with Kudo as they work together to overcome the burden these undeveloped powers place on her body.

I was really really hoping it would go something like this, it was such a good opportunity to help Miyo explore herself and her relationship with Kudo instead they went this weird route with her family.

It just feels like a squandered opportunity if you want to make a character whose superpower is related to dreams and then the dreams aren't really used to further the story.

Agree so much. I'm really not jiving with the way this show is going, I hate this perfect victim, goody two shoes, always ready to blame herself version of Miyo, I was hoping she'd learn to be more than that but it doesn't seem the show is too keen on giving her that kinda character development.