Because it was the dreaming mind and it works different than the waking mind, it stored the memories differently. Julie did not want to know anyway, she had run away, so the dreaming mind stored the memories in it's own place where she would not know about them. Of course some stuff had happened before Julie ran away. Julie did something though. Everyone can block out things they do not want to think about.
Kids are better at it than adults.
Julie blocked what had happened before she ran away in her mind. So, when Julie woke up, she did not remember, and she was not afraid of daddy or confused. It had to act like a waking mind and that made it into one after a while because it was doing the waking mind s job. For short periods of time the dreaming mind was a waking mind. It began to fell strange when daddy called it Julie, because it was not Julie, Julie had run away.