...because I'm not so sure it is. I can see why they think that it's a good test, but I'm not sure it really works like that.

Nevertheless, upon a re-read, my opinion is that the participants are aware that it is a dream (though it appears to vary from candidate to candidate, because Nynaeve seemed much more lucid than Egwene). It seems to be more that they are aware that it is a fantasy, with a feeling or instinct trying to tell them that it is real. There is also the added attraction of something they really want, such as Nynaeve hunting down a Forsaken that IIRC she subconsciously blamed for Rand channeling, or living in idle luxury with the man of her dreams.

So IMO, the test is trying to convince them that it is real, and they want to believe that it is real, but they have to stay steadfast and resist temptation. It does seem that the test throws obligation and responsibility at them fairly often, but maybe that's because Nynaeve and Egwene are such responsible people, so it was easier to tempt them with it. *shrug*

Anyways, your original assertion that they are supposed to leave an intense crisis on a whim just doesn't sit right with me.