Lyric discussion by mmlleee 

Cover art for Daydream lyrics by Beach Fossils

i hear

...i'm not upset when you're around...

...cause my head's caught up you're tangled in those dreams...

I think "I'm not upset when you're around" is correct, because it fits within a context of the song.

That is, the first verse starts

"Im not up....set when you're around"

and the second verse starts

I go up....town on a quiet day."

Eh?