A Nightmare on Elm Street 2:The Gay One....
"It was meant to be subtext," except it really wasn't. It was pretty in your face.
If you haven't
@Mr_Karate_II
you should watch the documentary "Scream, Queen! My Nightmare on Elm Street," it expands upon the info given in the doc you watched, though in fairness it's from Mark Patton's perspective.
There is also a theory that a major portion of ANOES was a dream, if not the whole movie itself. So maybe ANOES 2 is also just a giant dream sequence? You never know.