Does Gameloft offer a free upgrade to PS5® versions from PS4® versions of Dreamlight Valley that are already owned?

Yes, Gameloft offers a free upgrade from the PS4® version to the PS5® version of Disney Dreamlight Valley. To upgrade:

Sign in on your PS5®: Use the same PlayStation™Network (PSN) account associated with your PS4® version.
Insert the PS4® game disc (if applicable): If you own a physical copy, insert the disc into your PS5® console. Note: This requires a PS5® console with a disc drive.
Access the game hub: Navigate to the game hub for Disney Dreamlight Valley on your PS5®.
Select the upgrade offer: In the game hub, choose the upgrade offer for the PS5® version.
Download the PS5® version: Follow the prompts to download the upgraded version.

After installation, you can play the PS5® version. If you have a physical copy, ensure the PS4® disc is inserted each time you play.

For detailed instructions, refer to PlayStation's official guide on upgrading PS4® games to PS5® versions.