So, I got called a "tr*nny" ... in my dream

Setup:

The scene unfolds in front of a building (somewhere) with myself, a friend (not detailed, but there was a feeling attached to her which gives me a good idea of who she was — a friend from work), my friend's friend (a dark-blonde haired young-woman, and while the exact details escape me, she kind of had a resemblance to Sunset Shimmer, except wearing a jean-jacket instead of a leather one (spoiler: she's the one whodunit *le shock* ) and a group of other people who don't matter because they didn't really do anything.

So my friend's friend (who we'll call Blondie) was asked why she seemed upset and she responded at me (with a tiny bit of malice):

"Because, I don't like that my friend hangs out with a tranny."

++Note:

Whenever I dream, I am immersed. Meaning, no matter what is happening, I cannot tell I am dreaming and go with the flow as if it were real life. Obviously I realize after I wake up that I didn't really have a tea party with Princess Luna, Cellie and the Mane 6 in Canterlot Castle, but at the time it seemed real, OK :/

/Note++

Everyone is silent. I decide to break the silence. Now, naturally, I am quite upset at the moment. There are more feelings going on than I will write, but needless to say this sort of situation isn't something I'm looking forward to experiencing in the future (as benign as this particular hypothetical actually is).

So I ask her one question, really the only one that I'm curious about:

"Why does it concern you?"

At this point, things start going dark and fuzzy. I see Blondie kind of sitting there, eyes misting a bit, then I wake up.

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