Hey thanks for going through my games. Yeah I can see how the mapping is rough here. This was made in around 2 weeks while I was learning the engine. Balance was definitely an issue due to deadline mostly and the warrior class didn't get any balancing pass.
For the dragon, you can skip the fight by presenting the correct items, and the answers can only be found if you finish the "hidden" Hagen quest and read through all the lore from the items you showed him, and also the clown items from the sewers.
It's a lore check to see if you have pieced everything together; there is a single, definitive timeline of events that occured from the summoning of the First Hero Lordred to you the player as the Fourth Hero being summoned to kill "Greven". For example the Greatshield of Victory lore (the last item on the Victory set you can only get by completing the Hagen quest) would tell you how Lordred is still alive.
The fight is doable, I did kill the dragon in my playtesting, but you have to minmax a bit with the essences and the offhand wand with Boost Defense.
I thought about revisiting this game but the project files were in an older laptop and I didn't make a backup unfortunately :(
Looking forward to your other playthroughs!