If this was made solely for this GameJam, i.e. you started working on this for one week, then it's amazing. Creating the idea/story and most important the assets in one week, just wow. Especially the two artstyles choice. (though i find it a bit ironic that the less detailed pixel art is for the "real" world, while the more detailed handdrawn art is for the dream world)
Before i got into some criticism(don't worry, it won't be bad ;) let me just tell you, i would love to see a full game like this.
Now then, my only real criticism(other than the length, which is why i said i want a full game haha) is that the movement of the player is too slow. I get you don't want him jumping around like in a platformer, as this is more of a horror/point&click adventure game, it's still boring to sit through him going from one end to the room to the next.
There was also a bug that happened(minor spoiler for new players!). I played the game first normally, i broke the musicbox and then later "accepted" the situation. He woke up moved a bit and then it faded to black, with the new music keep going. Nothing happened and i assumed it was the end. I then looked into the txt file and decided to play again to get the second ending. I kept the music box as much running as possible, however the moment i "accepted", the game gave me a bug notice and crashed.