This is a bit of a "new" field and there is definitely wariness about it. There have been people who have had more exposure and experience with nightmare energy, but it wasn't until around March, summer, and the Orkilins arrival did the concept of using nightmare energy productively in "positive" ways really start to gain understanding. Even then, it's not really a widespread thing because nightmare energy still has more negative, dangerous effects, so most people are wary to try. Especially when normal dreamotion is easier and safer to use.

So it's a bit of a mixed bag on how much a character or anyone else can pick up on the info. In general it's not talked a lot still—not that it's taboo or anything, it's just not something people will be like, "Oh yeah nightmare energy is so cool!!" yet, and this is because of the cautionary feeling people still have about it. Orkili will be more forthcoming, but it's only been recent that there's been chances to interact so not a lot of info has dropped.

Which is all to say, you have been working under the correct assumption so having your character not know much and try to learn in this event is definitely fine and won't be "wrong" in any sense! You can also have them at least know that yes it is a thing and can be done, but have to be careful about it.

I hope this helps! If there may some specifics or anything you'd like to know, feel free to ask.

(This does remind us that we do need to update things, so thanks for asking and pointing it out!!)