That could definitely happen. That said, this is flexible -- dreams are weird! -- and it could be that wounds matching the ones on their dream selves only appear when the person wakes up, or that the person will appear to be in pain and physical distress while sleeping but won't have actual, physical wounds.
(Consider yourself free to Rule of Cool this aspect, in other words!)
Re: EVENT QUESTIONS
(Consider yourself free to Rule of Cool this aspect, in other words!)