It could mean anything.
For example,
Case 1, he's not really asleep or is really only close to sleep.
He's basically responding to your question. He may be using "sleep" to tell you what you want to hear or is using sleep to cover what he really wants to tell you.
Case 2, he was talking in his sleep, that is, he was dreaming and you got him to verbalize in a dream. He could be talking to you or his dream. And, dreams can be weird -- he could think he's talking to his dog, a tree, an ex, or you. So, ignore actual dream talk.
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