I came back here to reread more than once the tale told by the old lady of the village.
I noticed a detail overlooked by many, and I don't know if that's your intention, but the expression you gave the dragon is kind of contradictory given the context of the battle. Looks like a sad expression to me. Or at the very least, troubled.
Of course, the dragon is not an innocent in the story as he terrorized and wreaked havoc on the innocent people of the village.
But this particular detail is a little more accentuated when after the end of the fight, Varenmere was sad.
Apart from that you don't see the sword in her hands when she flew away.
Of course, the sadness is much more likely explained by the destruction or possible deaths of civilians in the battle, as it lasted for days and the damage spread more than she imagined.
But there is also another possibility: Maybe sadness can be correlated with the dragon...? Perhaps she knew deeply what the story of that dragon was?
And the sword must also be significant to have a great power to annihilate a supposed "dark being" - since it doesn't say anywhere that dragon is of darkness in the tale.
It couldn't be dropped so easily or the sword would have magically disappeared for other reasons.
Or either it must have cost Varenmere enormously - in return -, or the dragon she slew must be someone she knows or plays an important role in some other context.
The tale has many strange aspects that are not reported. As if they were purposeful written or spoken by whoever created/spread this tale in the village and the old lady going over that tale without knowing it... hmm, something isn't right.
Long ago, in a far off land known as Stroica, heroes and villains are born to carry out their destiny. This is the land where we find our hero. Lasota, a Gremlin who comes from a small village of Sielaska in Nova Zemia, who wishes to be an adventurer and to run off into the unknown. He finally gets to fulfill his wish, and in doing so, he quickly learns that the world isn't as bright and beautiful as in the stories he heard while growing up. Dealing with death, insanity, and the harsh world he thrust himself into, he attempts to survive with his friends, fighting against the evils of the world that want them dead and that stand in their way.
Join Lasota, Wacław, Norbert, and Josephine in a journey that spans the land of Stroica, which is full of thrill, elusive mystique, and ominous history. Learn of it's races, celebrate their cultures, and follow their stories, with this team of differing ideals and beliefs. And remember - No one can escape death. Not without a price at least.