I consume lotsa caffeine and still have weird, vivid dreams that I remember in the morning. I'd say in my case the caffeine doesn't inhibit any dream capability. I also have small fragments of lucid dreaming, but usually wake up quickly then (because of the excitement mostly).
Ditto on "lotsa". To the point caffeine no longer amps me up but rather just keeps the migraines at bay. Pondering my addiction many years in the past, I decided to try an experiment where I drank a few sips of coffee before going to sleep. It did, and still does, increase my lucidity & retention during/after sleep cycles. I have vivid dreams with self awareness pretty much most nights, and a experience a surprisingly large amount of content during power naps(15-45 minutes). This is still a drop in the bucket compared to my dreams when I was a teen & 20-something, however. I haven't been able to 'fly away' or soar like I did when younger, nowadays I merely wake-up when things start down a dark path(*Covid induced nightmares, were a rare exception; the 1st night terrors I've had in decades).
