Almost all of the book of Revelation is a vision, not to be taken literally. E.g. Revelation 9:17:
And thus I saw the horses in the vision, …
The Transfiguration was also a vision, not reality, as stated in Matthew 17:9:
And as they came down from the mountain, Jesus charged them, saying, Tell the vision to no man, until the Son of man be risen again from the dead.
Jesus is quoting from Exodus 3:6:
Moreover he said, I am the God of thy father, the God of Abraham, the God of Isaac, and the God of Jacob. …
in Matthew 22:32:
31But as touching the resurrection of the dead, have ye not read that which was spoken unto you by God, saying,
32I am the God of Abraham, and the God of Isaac, and the God of Jacob? God is not the God of the dead, but of the living.
The context is the future resurrection of the dead.
By saying "He is not the God of the dead, but of the living", Jesus meant that the patriarchs will be resurrected to life when they are reborn in the Kingdom of God.
But meanwhile, they will still remain dead, buried, and unaware until Christ's return though.
This is confirmed in Hebrews 11:13:
These [the patriarchs] all died in faith, not having received the promises …
Given these scriptures, is it more biblically sound to believe that our spirits remain alive and conscious after death, rather than entering a state of soul sleep?
Those quoted scriptures give no support for consciousness while in the grave.
On the other hand, there are many references to death as sleep and to the dead being unconscious, as in this excerpt from my answer to According to Protestantism, what are the strongest apologetic arguments against the doctrine of Intercession of Saints? - Christianity Stack Exchange:
For those denominations that take the Bible fairly literally, everyone that has ever died (with one notable exception) is still dead and buried and awaiting resurrection.
For the living know that they will die; But the dead know nothing, …
— Ecclesiastes 9:5
No one has ascended to heaven but He who came down from heaven, …
— John 3:13
Men and brethren, let me speak freely to you of the patriarch David, that he is both dead and buried, and his tomb is with us to this day.
— Acts 2:29
For if we believe that Jesus died and rose again, even so God will bring with Him those who sleep in Jesus.
— 1 Thessalonians 4:14
See also my answer to Gehenna (γέεννα) vs Hades (ᾅδης).