Sutra 3.2.3

3. But it is mere Māyā; on account of the true nature (of the soul) not being fully manifested.

The things appearing in dreams-chariots, lotus tanks, and so on—are absolute Māyā, i.e. things created by the Supreme Person. For the term 'Māyā' denotes wonderful things, as appears from passages such as 'She was born in the race of Janaka, appearing like the wonderful power of the divine being in bodily shape' (devamāyā). The sense of the passage 'there are no chariots,' etc. then is—there are no chariots and horses to be perceived by any other person but the dreaming one; and then 'he creates chariots,' etc.—i. e. the Supreme Person creates things to be perceived by the dreamer and persisting for a certain time only. Those things therefore are of a wonderful nature (but not illusions). And the creation of such wonderful things is possible for the Supreme Person who can immediately realise all his wishes; but not for the individual soul. The latter also, indeed, fundamentally possesses that power; but as in the Saṃsāra state the true nature of the soul is not fully manifested, it is then incapable of accomplishing such wonderful creations. The text 'the person shaping one desired thing after the other' declares the Supreme Person to be the creator, for the clauses immediately preceding and following that text (viz. 'He who is awake in those who sleep'; and 'that is the Bright, that is Brahman, that alone is called the Immortal; all worlds are contained in it and no one goes beyond'—Ka. Up. II, 5, 8) mention attributes distinctively characteristic of the Supreme Person. And the Bṛ. Up. text, 'For he is the maker,' must therefore, in agreement with the Kaṭha-text, also be understood as declaring that it is the Supreme Person only that creates the things seen in a dream.—But if it is the true nature of the soul to be free from all imperfections, and so on, why then does this not manifest itself?—To this the next Sūtra replies.