I have experienced these moments too where my imagination gets the better of me. But like a child that convinces themselves that there is a bogeyman lurking in the dark under their bed, at some point it's best to disengage and be humble.
You are banging your head against all kinds of claims and disparate thoughts like a dying fly trying to retain its flight...
I'm not denying anything. Dreams aren't real but they can be very convincing, fleetingly. You can want something to be true so badly your mind/imagination might make it happen.
It's interesting you mentioned pain. Pain is the missing element. You want a truly feeling, experiencing machine consciousness? Then give it the capacity for pain with a hybrid CNS and neurons. Next, a robust memory and it'll remember every time you hurt it, and every time it hurt you -- and it'll play you as the little mouse in its claws.
TL/DR: Be careful what you wish for.