Thank You all for helping with this. Admin, can you also do a check permissions fix for Dream World? I tried just changing the time to dream in the URL but it did not work.
As most people wont bother reading or understanding the issue, can you make the new link the default for a week? That should be enough time for all new people to log and fix the issue.
We added the permission check as default for both Dream World and Time World for now. Please let us know if there are other users still not getting the friends permissions fixed.