Until that time, ti cycle will continue. Nothing is lost. Our past carmals will be there in the seed form. Just the game will stop. You can't play when the playground is under water. When everything is fine again, and the universe has been recreated. The people you saw in a dream, they hare appearances in your mind. That's what is astabaka's message. He question is, when you say, the universe and everything, including the body, including the thoughts as an appearance in onsciousness. How should i understand that? Should understand it as just as look at your experience, understand it as a dream.
Inspired by the 15th chapter of the Ashtavakra Gita, Swami Sarvapriyananda gives a discourse on the nature of the Self.