This is the moment of early awakening, when you opened your eyes, but not yet fully awake, but you already see the environment and so on. This is definitely not a dream, because when the paralysis ends, you just come to your senses.
I recently learned that sleep paralysis during falling asleep and waking up is quite common.
I just thought how scary it must have been for people in the past when there was no internet. They probably thought they were going crazy, or that they had been corrupted.