Ok Rhyssa, that note about having to stand by Gaalsif tells me for sure what's going on. If you haven't done a full scan recently, do so. What happened is one of those bugs that there's really nothing the developers can do to fix. I've had it happen a few times too. Your client and the server are "out of synch", basically. Clearing my world cache and doing a full scan was able to fix it.
Glad it worked on your dragon. Hopefully Rhyssa (the character) can be fixed soon too.