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No. Stardust cannot negate a card effect that may not destroy a card. Because Magical Dimension states that you CAN destroy a card, stardust's effect cannot be used. Its the same thing as when someones uses snipe hunter vs stardust. Stardusts UDE ruling even states that "Stardust Dragon's" first effect cannot be chained to an effect that may or may not destroy card(s) on the field, like "Barrel Dragon" or "Snipe Hunter". This is because the destruction is at the resolution of the effect, and nothing can interfere with the resolution