I don't think so. To me it reads very clearly that she thinks the "trans healthcare" part of the Nazi book-burning is what is preposterous. Pretty sure she's one of those transphobes that believes trans people are some kind of modern woke plot that hadn't yet been invented back in the 1930s. Obviously she would also deny upholding Nazi ideology, but she wouldn't use that kind of terminology. What she is calling a "fever dream" is referring to the historical fact of Nazis specifically burning research on trans healthcare, I'd bet my meager life savings on it.