I haven't seen this particular scenario on KMC though I have seen it on others. It is such a great idea with a lot of room for debate because neither can die or be held down for that long. One on one fight, anywhere, anytime.
Depends on whether they are fighting in the dream or real world.
In the dream world, Freddy is nigh-omnipotent, so no chance for Wolverine.
In the real world, we can compare Freddy Kruger to a fight between Wolverine and Lady Deathstrike. And let me tell you, Lady Deathstrike would murder Kruger. That said, Wolverine could hang with Deathstrike for at least a bit, and he's shown he can sustain multiple stabs and keep fighting. The same cannot be said for Kruger. Also, I could definitely see Wolvie taking some limbs off, or maybe even his head.
So, Wolverine wins this fight easily for me, perhaps 8-9/10.
A lot of "Nightmares" mythology though is confusing and contradictory, but I think that is the point because reality/dreamland are supposed to be muddled due to Freddys influence on them. He could trick Wolverine into thinking he's awake when he's really asleep.
In Dream World Freddy wins 9/10, but in the real world he'd likely win 2/10, if that. Then again, you never know, he proved to be able to handle himself quite well against Jason, but that was also because Jason was bigger and slower so who knows?
Freddy has the advantage in the dream world, but lets face it, Freddy has never faced someone like Wolverine.
He's used to fighting sexualy deprived kids and normally ends up losing.
In the dream world Kruger has a vast amount of powers, so Wolverine won't just beat him as if he's nothing. Freddy is one of the smartest villains in history, and in the dream world, he controls pretty much everything, so Wolverine is going down. Now, if we're talking the real world, that's a somewhat different story.
Neither Freddy nor Logan can "die" in the sense we think of dying. I think of this as a circular battle that goes nowhere for years on end(Think of that one South Park episode with Satans two boyfriends). Actually, isn't that like most comic stories?