What does the cryptic crossword clue "Imagined setter being enveloped by fear (7)" mean?

The definition is "Imagined". The wordplay uses a container (one word inside another). ME (synonym="setter") in DREAD (synonym="fear") = DREAMED; definition: "Imagined" The answer is DREAMED.

Imagined setter being enveloped by fear (7)

Independent Cryptic #11765 | 1 Down | 2024-06-25 flower

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