I agree, it's not an answer to the prompt. Lucid dreaming could be a hobby, activity, or interest, but I think the prompt is asking about an extracurricular activity- like club, sports, band, or a summer activity, work, volunteer experience.
I don't know where you live but examples might be:
Volunteering at a hospital
Playing an instrument
Member of a debate club
An art project (if you spend lots of time with this)
Lucid dreaming is a solitary activity that does not have the impact of the others.
Hope this helps.