It is true that Khutit form disables flight, but that is the same way that hatchling form disables flight as well. I have no experience with code so I have no clue how it works.
However, Khutit form does not disable breath attacks. You can still use Breath of Fire, Ice, Lightening, Acid, and Flame Burst in Khutit form but they do no damage because your Dragon Breath skill is limited to 0.