This is entirely normal. This is what your subconscious mind does all the time on a daily basis whether you're aware of it or not. Take awareness-increasing substances psychedelics and see these fantastical scenarios (which are very much like dreams yes?) come to life around you. Take awareness-decreasing substances such as alcohol, meth or prescribed ADHD medications and/or antidepressants and watch those colourful scenarios disappear leaving only your "real surroundings" and no more dreamlike stories.
Now that you know this is normal and how to increase/decrease it, I want you to tell me exactly why this is bad thing (..how it negatively affects your life), and which path you are going to choose to deal with it.
You can either embrace it and nourish it with mild psychedelics such as weed, MDMA and the traditional psychedelics such as LSD, mushrooms, DMT and mescaline,
Or you can deaden it with awareness-decreasing drugs that are designed to turn colourful, imaginative, creative humans into efficient, concentrated, productive people machines.
Your choice but I will give you a spoiler alert; life becomes very boring when you decide to take the productivity route.
My recommendation: dabble in psychedelics and learn how to harness your imagination and creativity (especially with all your newfound free time during this quarantine lockdown), and channel it into a craft (be it music, art, writing . . . literally anything requiring your imagination) ... and then later on down the track start to refine your focus and efficiency with intentional use of productivity drugs that you can bring you back in from your infinitely wild and boundlessly creative mind.