Was David Lynch inspired by elements of Xanadu?

The movie begins with an iconic line "Guys like me shouldn't dream anyway." Much of the movie unfolds in dreamlike themes and style, including the scene at the abandoned theater.

These elements reminded me of Mulholland Drive, although the two movies are quite different. Mulholland Drive was based on a dream of the main character pursuing fame in the city of dreams, and includes a dreamlike sequence in a darkened, historical theater in old LA.

In Xanadu we see Gene Kelly blowing on a clarinet out at the beach. In Mulholland Dr we hear someone blowing on a clarinet in the theater scene.

Mulholland Drive released around 20 years later.