After being captured by the absorbtion bounded field the illusion you're put in works by reading the mind of the captured person to give them their deepest desires.And then there's the weirdness of Alica and Fate's conversation after the BoD absorbed her.
For all that it was supposed to be a Lotus-Eater Machine situation, Alica certainly didn't seem to be behaving according to the expected script towards the end. Was it the BoD being distracted by Nanoha repeatedly blasting it plus Hayate going
'I'm your master, I'm evoking Administrative access, stop.' and thus not keeping things on track, Fate's own subconscious effecting the dream, or someone/thing else?
And because Fate has Alicia's memories implanted in her the illusion ended up making a much more perfect copy of Alicia's personality than Precia managed with Fate.
You could consider the dream as essentially being a combination of Fate and Alicia's desires.
Databook
Dream of the book of darkness
An illusion Magic that is used upon those who are captured by the "Absorption". Accessing the Mind of the Captured, it shows a dream based upon the deepest desires that is hidden within their mind. Until the Master of the Book of Darkness releases them, or the Captured understands that the dream is, in fact, a dream, and then wish strongly to leave the dream behind, this Dream continues non-stop until eternity.
Sisters
While Fate had no means to meet with Alicia when she was alive, when Fate was born, she had been implanted the memories of Alicia Testarossa, and at the time of Alicia's Death and Fate's Birth, the memories of the two people were a muddied mess. The Dream of the Book of Darkness had awakened even the portions that Fate herself could not recognize nor recall about Alicia Testarossa's memories, and recreated the personality from there. While it was never possible in real life, but it if it was these two would have been sweet sisters. When Fate chose to leave, what Alicia said to Fate was in her own words as the "Older Sister", which was given to the "Younger Sister" who she never managed to meet in real life.
I don't think Radiation poisoning is a good comparison since the very reason the TSAB is a heavily magical civilisation is because magical energy is a clean efficient source of energy. And they don't want pollution like the various WMDs Mid-Childa and Belka used in the past caused.
To speculate a bit more on the details i can think of two possibilities of the top of my head of why Alicia suffered cardiac arrest based on the info about magic in Nanoha i know.
1:Since it is called unreacted reactive magical energy it reacted once Alicia inhaled it and caused a small magical explosion inside her lungs similar to a magical attacks stun setting. Which can cause mild physical shock to biological matter and that impact occuring inside her lungs stopped her heart. And probably damaged her lungs to.
2: Since it was intended to be converted to electricity in the reactor when Alicia inhaled it the magical energy reacted and finished that process and Alicia received an electric shock that stopped her heart.
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