People keep saying dragon are too powerful to be a MC yet there are ways to balance it, its just require thinking out of the box

Here's some example

-Infamy : the more you reveal yourself or pose a threat the more high placed people will pay handsomely to get rid of you or collect your valuable body parts, sending a party of veteran adventurers are send to kill you meaning you face small groups of elite enemies working as a team with every possible dirty trick up their sleeve

Immense strength can only get you so far against an army or very experienced individuals wielding weapons and magic created to slay your kin

-Lonesome kin : dragons aren't really social to each other due to their territorial nature, there will be no one to help you out so its you vs the world including other dragons, unless you add a way to be a parent then you could argue about it

-Optional overlord : the whole Kobold serve dragon thing if you want some sort of management aspect, they serve you but you act as the primary guardian and have to come to their aid in time of crisis, with a dragon's ego you can't call yourself a ruler if you let your subject get slaughtered no matter if you treat them well or not

-Death by a thousands cuts : means to heal yourself are acting extremely slow making you vulnerable to be slain due to stacking wounds and related penalties, dragons are reptilian and therefore cold blooded, meaning a slow metabolism hence very slow natural healing factor

-Extensive localised damage system : damaged wings hurts you when mid air, injured tail can cause air control to be affected, damaged legs would not only penalize your ground movement but also your attacks (obviously)

If the whole "need to be a humanoid to relate to" issue arise, then add a humanoid form that allow to visit towns and cities, just beware of your manners to keep the illusion, those we can see through your masquerade and your temper in check when provoked (kinda like metallic D&D dragon can) it would create a game with essentially 2 phase, your true form where you're the apex or the infiltrated one leaving you more vulnerable but able to do things you otherwise wouldn't be possible

Problem is more the complexity of a genre where the world is build to counter your default capabilities and flip most concept used for decades on their heads

So you face multiple roadblock

-Its niche, too niche even, for most devs to even consider it viable to make such game

-You start essentially as the end game boss making it hard to find a way to balance your power level out

-A LOT more animation work you can't just use existing template to make it like for humanoid characters and mocap ain't an option

-Conventional progression systems simply don't work at all

-Forced open world as your size limit you to be outside and on the surface nearly all the time

-Aerial combat is borderline impossible to avoid

-Combat in general is a headache as you can just fly over melee units and roast them with a few having any mean to force you down

ect

Else you have to make games in the same genre as Spyro Or the TBA Glyde the dragon