So, I think the idea can have legs, but there are questions that probably need to be hashed out for an RPG that don't usually need to be hashed out for a story.
Dragons - assuming they are like D&D dragons - big, powerful, can take down a whole town if there aren't some really epic people around to stop them.
I’m not sure they
are as powerful as dnd dragons, but they’re still powerful.
They can shapeshift into humanoids...
... so why do these dragons need non-dragons around? I mean, they have all the power of a dragon, but hands with thumbs and the ability to go indoors when they want to, too. What are the humans around for? With what we'd expect to be a pretty massive power disparity here, how do you handle the spotlight-sharing issue that usually accompanies power-disparity?
I’m not sure the dragons need non-dragons around, but they can’t (and most aren’t inclined to) exterminate them, so they’ve gotta coexist to some degree.
There is a place for ancient draconic powers, but they’re something like gods, or Fizban’s Great Wyrms (if the Great Wyrms had always been such, rather than growing into that power).
Like how many gods look human because they are concerned with mortal affairs, the great dragons look draconic.
What mortals can hang out with are more similar to Pern dragons, And they’re generally horse sized in body with wingspans similar to
quetzalcoatlus. I’m undecided on whether they have 4 or 6 limbs.
that still leaves a powerful creature, though. One way to balance spotlight time is to give less powerful characters more narrative control, and tools for driving social scenes, etc. Something like how Monster of The Week balances the mundane guy with the chosen one.
Another is to give the dragon character less stuff from outside their Ancestry. So less of thier power comes from Archetype, to make up for a noticeably stronger Ancestry.
Or bring up the power level of humans to match dragons!
