I think the problem is that, at least in my experience, you end up with more anxiety once the initial high wears off. Paranoia is an extremely common side effect of Marijuana, and so are nightmares with prolonged use. And once you kinda get into a routine with it, you have a hard time quitting, because your overall anxiety is raised, and you need it just to get back to a normal functioning level. My guess is that this is due to the effects that THC has on blocking your REM sleep. Without the proper REM sleep, it seems pretty common to be anxious and foggy-brained.
THC cannot both ”cause nightmares” and ”block REM sleep”, because nightmares happen during REM sleep.
People who suffer from nightmares may benefit from less REM sleep. It’s much more refreshing to sleep in a non-REM state and wake up normally than it is to repeatedly wake up in cold sweat and be afraid to go to sleep again.