Past continuous vs Present Perfect Continuous vs Past Simple

Past continuous tells us about an action in progress in the particular time of the past, right? And Present Perfect Continuous – about actions that started in the past, continued some time and still happening now/or it’s just stopped. We usually use it with also particular time.But, something is not clear for me. For example:
There are two friends talking, and one asks:
– You don’t look very well. Bad sleeping?
The other says:
– Oh, I didn’t sleep at all, I was dreaming all night long.
Isn’t the last one more present perfect continuous? Because we have the result ( the friend doesn’t look good) and duration ( dreaming as a process, all night long)

Also, this one:
In 1994 he was working in a small town in Poland.
It’ s more like a fact, isn’t it? Should it be in the past simple?