(((hugs)))
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I think that may be too much water (at least from the studies that I have read). And if you're hating it and it's making you uncomfortable too then I would cut it back some. Try maxing out at 80oz - that is still plenty of fluids but is below what seems to be the benchmark from what I have read. Hopefully cutting back some will help your milk supply.
Ok, onto the formula. I'm assuming that she takes a bottle ok since you mentioned you did a bottle dreamfeed, and it's the formula that she's rejecting. When I was trying to get Dylan onto soy milk (he was 16mo so we were beyond formula) for his day feeds he rejected it straight off so we had to do it gradually. We did:
week 1: 4oz ebm + 1oz soy
week 2: 3oz ebm + 2oz soy
week 3: 2.5oz ebm + 2.5oz soy
week 4: 2oz ebm + 3oz soy
week 5: 1oz ebm + 4oz soy
week 6: all soy
We had no problems with him rejecting anything along the way, probably because we did it so gradually, and I still bf morning and night. You could go more gradually if you want (say, in 1/2oz increments instead of 1oz) and you can vary the timing (we did 1 week and made the change every Sunday, but you could increase by 1/2oz every few days if you wanted it to go more quickly).
TBH, hypoallergenic formula tastes VILE so I'm not surprised that she's rejected it. If she's got a dairy sensitivity I would try soy first - it's better tasting and you'll be less likely to deal with rejection. Approximately 40% of babies with MPI are also intolerant to soy, so keep your eye out for symptoms. Keep in mind though that some changes (like poops) are normal as her body is getting used to something new, but watch for diarrhea, increased fussiness, and other symptoms that you noticed when you still had dairy in your diet.
(((hugs))) and good luck. Remember that this doesn't have to be the beginning of the end for breastfeeding - plenty of moms have mixed fed successfully so you can keep bfing too if that's what you want
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