This is a very sad question to ask. One should abstain from asking ill things about parents. We do accept that live and death is with Allah. And that death is to come. Even to parents. This is reality. Let us begin with dreams.
There are two types of dreams. Let us focus on this important hadith:
1516- Hadith in Al Muslim. Abu Salamah reported that Abu Qatadah narrated : I heard the messenger of Allah saying : “A good dream is from Allah, and a bad dream is from Satan. So, if anyone of you sees (in a dream) something which he dislikes, when he gets up, he should spit thrice (on his left side), and seek refuge with Allah from its evil, then it will not harm him. Bukhari 5747.
The first thing is that this is a bad dream. One should never think bad of father. Father is a blessing. Fathers dream of taking kids for Umrah. He is ordained to teach Islam.
Islamic Interpretation of dream of death of beloved father
Father is a blessing. In all religions. In Islam, fathers hold a special place. They are many hadiths and narrations on the importance of the father. The father forgives. In some cases it is stated that if the father is angry with his kid hence Allah is angry.
Parents are blessings. They are covering from bad things. This is a reality. One beauty narration covers it. There was one sahabi. He is crying. His father died. People are paying condolences to him. However, he says something very powerful. “I am crying because my father died. I am crying because the easiest gateway to heaven is now closed.”
What a remarkable statement. Father is a gateway to heaven. If you have a father, love him. He will guide you and care for you. Be sure you are kind to him. His prayers make the difference. They will bring the value to you. Pray for him.
Now coming back to seeing him die. Is bad. Never accept it. Ask forgiveness. If he is dying in a dream it is all bad. The impact is on you directly.