Does what occurred count as a wet dream, and what is the ruling on the expulsion of a large amount of fluid upon waking, given that it resulted from recalling something sexually stimulating and fondling the penis before sleep?

Nocturnal emission is the discharge of semen during sleep. If one wakes up and finds semen, ghusl (ritual bath) becomes obligatory, even if they do not recall having a wet dream. Fondling the penis is forbidden and one must repent from it. As for seeing something forbidden unintentionally, there is no sin in it, provided one averts their gaze and does not continue looking.