Now and then, fantasies are muddled (2,3)
I believe the answer is:
at sea
'muddled' is the definition.
Both the answer and definition are adjectives. Perhaps they are linked in a way I don't understand?
'now and then fantasies are' is the wordplay.
'now and then' means one should take alternating letters (letters taken on a regular basis, now and then).
'are' becomes 'a' (short for 'are', historical unit of measurement).
The alternate letters of 'fantasies' are 'atse'.
'atse'+'a'='AT SEA'
Can you help me to learn more?
(Other definitions for at sea that I've seen before include "Voyaging" , "disorientated" , "Confused (in the main?)" , "On a moving ship?" , "Sailing - confused" .)