It's on The Dreamers oversized card. The first sentance of the last paragraph on the 'Roused From Slumber' side. Her standard villain card says "At the end of the villain turn The Dreamer deals each non-villain target H minus 2 psychic damage." on the oversized card this reads "H minus 1 psychic damage".
You're not wrong!
But, actually, this was reported yesterday. The standard (easier!) card is correct.
https://greaterthangames.com/forum/topic/proper-damage-dealt-by-flipped-dreamer-3201
Well dang I didn't see that thread. Sorry for the double report. I did figure that the standard card would be the one to go with though.