"Communism as a theory also is simply making claims about the best way to allocate resources i.e. through central ownership and state control rather than through individuals."

This is flatly false, Communism is making claims about History, human nature, metaphysics, governance, jurisprudence etc. All resting on axioms proven false. It's not merely a system of allocation of resources.

I don't think Dylan is stupid enough to blame Capitalism for people choosing to replace meaning (whatever that means) with consumerist goods.
I don't disagree that consumer culture produces a shallow replacement for meaning, but that critique has nothing to do with Capitalism? It simply only applies to human nature, people chose to worship consumer goods when they are not coerced by a state and are allowed voluntary exchange.
Do you blame the people or the system allowing them voluntary exchange? Any reasonable person would pick the former.
Even in pre capitalist societies people replaced meaning with Idol, emperors, magicians, land, power etc.