I think that Jack had something odd to begin with but it might've changed after the whole reset thing. I would find it hard to believe that the Guardian couldn't knock him out, same thing with Brother Riley. I also doubt that the idea that he couldn't sleep made it so the power didn't work, because Jack was able to stay awake after Brother Riley tried to knock him out, even though he was told it was all an illusion he made up. Overall its very ambiguous, intentional or not.