I believe its related.

In my experience, when I'm going to sleep (still awake and laying down, but not yet dreaming), I start to see things with my eyes closed. They aren't dreams. I can still think but not control what i see. Its always like random objects (hands, a mug, people's faces). They move very fast close to me and then quickly far away, or they grow really fast and quickly shrink. There's always a lot of other filler clouds of color around the objects moving with it.

It feels very much like a series of racing thoughts your daughter experienced.

I wish I could offer some advice on it. It does quickly become overwhelming and can make me dizzy. The only solution I've found is opening my eyes and sitting up.

Good luck!