DND_Reborn
The High Aldwin
How does the dragon know what level the pcs are? Was that an arrow of dragon slaying that just missed?
As a DM I think I killed a pc who ticked off the dragon in this hardcover. Attacking a dragon is mistake. If you come out with it with your lives, your dm is being nice.
Well, whether the arrow missed or hit, and how much damage it did that being the case, would give the dragon an idea. If they had strong magical items, such as an arrow of slaying, that hit it would have also keyed it into the relative strength. Since its fear worked on most of them, that is also an indicator, along with them pleading for their lives...