Britt, My husband wore a CPAP for years. He was even more comfortable when they came out with nasal pillows instead of a face mask as he was much more comfortable. Whenever he was in the hospital I would bring in his own CPAP machine so he could use it. If they wouldn't allow his machine I would bring in his head gear so he could have the set up that fitted instead of whatever they had lying around the hospital. The last 18 months he was on oxygen and there was a place to insert the line so he got oxygen in his air.
He would wear the CPAP whenever he was lying down. So if he was reading in bed for instance he would be wearing it. I think you might feel better if when you wake up you sit up on the side of the bed with the apparatus on then turn the machine off. If you start to have breathing problems you can turn the machine on again until you are comfortable then turn off the machine. When you are breathing without the CPAP then take off your head gear.
This is not medical advice just from the wife of a CPAP user.
Regarding CPAP vs BiPAP when they did your sleep assessment they would determine which you would need. Dick never did wear a BiPAP but the hospital staff kept referring to his machine as one as they didn't note the difference.
After we moved to Tucson when he got a new machine he got one with the ability to put moisture in the air. I think it is much more common these days to include the vaporizer. My daughter, son-in-law, daughter-in-law all use the same set up and they are in Minnesota and Washington State. All of them report much better sleep.
Are you getting in help in managing your panic? Sounds like the start of a vicious cycle when you start to panic. Julie