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"dilemma in" is a correct and usable phrase in written English.
You can use it when talking about a dilemma related to a certain situation. Example: The environmental group faced a dilemma in deciding whether to approve a new power plant project.
Exact(60)
Goldman faces a dilemma in its response.
Google faced a similar painful dilemma in China.
He tweeted, "Racial discrimination's still a dilemma in US.
IT'S all there in "King Lear", the dilemma in Iraq.
(I wrote about Romney's health-care dilemma in June).
The Kremlin faces a dilemma in resolving Mr. Serdyukov's case.
It clearly explains our current dilemma in the labor market.
Others dealt with the dilemma in a different way.
Sixtus V was faced with a dilemma in international relations.
"Up here," he said, "is my dilemma in a nutshell".
There you have the modern manager's dilemma in a nutshell.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com