When you dream, you make these people up or copy them from life, or a combination of both, they are not you. They are distinct beings, and there is no reason for dreams to be nothing but purely looking in the mirror. They are themselves, you think of them and you understand them to a certain degree, you perceive them to be something. They are autonomous, but there is no reason to ascribe them active consciousness. You put your consciousness into different identities and get what seems like foreign consciousness, to some degree.
It is you, making weird faces in the mirror.
At least, that's what I think.