Dreams are not a form of memory replay.. How can a nightmare or dying in a dream have anything to do with memory?
Dreams are not even closely related to us, they are given to us, yes, given to us.

OP's dilemma is completely different, he/She is experiencing real time viewing, something lm not familiar with. But l do know this, if you are or have been psychology scarred or hurt by someone it will affect your abilities to leave your body.. OP's capture by the police would have affected him/her mentally, it's not Karma (doesn't exist) it's trauma.