RE: A black dragon wanders in.
Ooh another werewolf! Nice to meet you!
To answer your question: It depends on what you believe about dragons and elves on Earth, I suppose. For me, there is inherent magic to dragons and elves of Earth that is not present where my kintypes come from. Neither race has a penchant for magic as we might associate with them on our planet, but they are capable of, for lack of a better term, a different kind of magic. Both races are uniquely in tune with the energies of things and are capable of bonding on an energetic level to other living things, which I've been referring to as a soul-bond because I haven't discovered their name for it yet in my attempts to recover memories etc. Soul-bonds, as far as I can tell, usually only occur between sentient beings. It can be dangerous to soul-bond with something else, mostly because of the shorter lifespan other living things have compared to them. When one of them dies, the other will probably die too.
When I think of dragons and elves on Earth, I tend to categorize them as fae or fae-adjacent, so I tend to default to thinking they possess a lot of magic we would consider common to fae, as well as the idea that they now exist largely in an energetic state rather than a physical one. My kintypes existed in a physical state before dying and having their souls return to the great energy/the aether that makes up living things. They also did not perform magic beyond the soul-bonding and the ability to understand other living things to some degree. Not like they could talk to them, but they could just... understand what another living thing incapable of speech might say sometimes.
Dragons also didn't possess anything like elemental breath, poison/acid spitting, or other similar abilities. (Which I know is not inherent to every Earthly dragon, but I figured I would point it out too.)