Is it permissible to use a targeted Qur’an (Al-Qur’an Al-Muwajjah) to nullify sorcery, or is that considered witchcraft and innovation (bid‘ah), and is there any evidence for its permissibility?

Disturbing dreams are not necessarily caused by magic (sihr); they could be from Satan. If it is strongly suspected that they are due to magic or possession by a jinn عاشق (obsessive lover jinn), the treatment is ruqyah (definition) as prescribed by Sharia (definition). It is best for a Muslim to perform ruqyah on themselves due to the sincerity of their reliance on Allah. If one needs a raqi (exorcist), they should be someone with sound beliefs and integrity, while being cautious of charlatans. Ruqyah has lawful regulations and is not an innovation (bid'ah).