Goof ?

Marked as a goof is Edward G never saw the blackmailer so would not recognise him at the end of the film.
I think this is a goof listing it as a goof.
1) The Police mentioned the bad cop thrown out for blackmail rather than arresting people. Did Edward G character see a picture of him then ?

2) If he did not see a picture the dream contained people he knew, he would of seen him with Joan Bennett character.