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Yes, you most definitely can save a Dream as Private. I have done this many times.
This particular Dream, clearly has already been Released - which makes it playable regardless of whether or not it’s Listed. That cannot be undone after the fact, Releasing something makes that version Playable forever.
If you Remix your Dream (and all the Scenes in it) Save a Private online Version instead of clicking “release” it will be totally private. But you have to use creations/remixes that were not previously made Playable. Check the creation settings to make sure they say “Unreleased”