My theory: I think Wanda is asleep and having a nightmare induced by the Dr. Strange villain Nightmare. Her powers are being used to bring other people into her created reality in her mind. This is why SWORD is involved and trying to wake her up. I think Wanda was particular vulnerable to someone like Nightmare because of her recent loss of Vision. It will be hard for her to give up this reality but once she really realizes that it's hurting other people around her, she will be forced to make a difficult decision and let vision go. Dr. Strange will come into it by traveling to the dream dimension to help Wanda. This will tie into the part she will play in the next Dr. Strange movie.