I'm going to be blunt here. So apparently the concept of Low 1-C Mario was accepted via this upgrade and the argument for it essentially boils down to these core points
There are an infinite amount of Dream Worlds [Universes] inside of The Universe
The Universe in itself serves as a container and is infinitely expanding, even despite the fact it contains an infinite dream worlds
Therefor it's bigger than 2-A [Countably Infinity] and would be Low 1-C
This logic would be sound if that actually was true. Here's where my fundamental disagreement with this lies. When the statement says that the universe is "filled with hopes and dreams...", it's not talking about the literal dream worlds that would be produced by such as opposed to emotion of hope and the phenomena of dreaming
We also know the universe doesn't literally contain dreams because this is contradictory to the established lore of Mario. Simply put, dreams ONLY exist within The Dream Depot and that's the place that houses ALL dreams. Not once in the series have we ever had a dream exist outside of The Dream Depot [The Dream World] and thus we have no reason to assume that the statement above is referring to literal dream universes, which it evidently isn't anyways via the context
So at best, this means that The Universe in Mario is just infinite in size and that's really it. This in turn would degrade the Low 1-C back to 2-A on the basis that there are an infinite amount of Chinchos that each produce their own dream worlds and an infinite universe would lead to infinite dreams on the basis that EVERYTHING in Mario is sentient, including the atoms, so yeah, once more, 2-A at max tbh
Oh and before anyone says anything, The Power Stars being able to encompass all of reality does not refer to the entire multiverse or the dream depot. We have no evidence it does and thus I don't see a reason to really talk much about this. At max, it would be "Possible Low 1-C" on the basis that it's POSSIBLE that Toad's mention of "all reality" means The Dream Depot or the general multiverse, but again, we don't know (although I'm in favor of just using that to refer to universe given "reality" at least refers to that scale)