What does “live in the past” mean?

To dwell on one's own earlier experiences, memories, or relationships instead of moving on.

How is “live in the past” used?

In There's Something About Mary (1998), one line is: “his friends would say He's dreaming and living in the past”

The clip at the top of this page is from There's Something About Mary (1998).

his friends would say He's dreaming and living in the past

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