Drag didn't say it's true. Drag said it's not fictional. Fiction and truth are not a dichotomy. They're not even mutually exclusive. There's plenty of things that are both or neither.
Eh, that's weird but I'm cool with it. If they want that to be their pronoun, whatevs. But that doesn't mean they understand the concepts of truth and fiction, since they apparently don't.
That's the correct answer. This "drag" business has to do with this individuals kink of sex with dragons, as alluded to in their bio. I'm not kink shaming, but it is bad form to force others to participate in your kink without consent, even in a nonsexual context. Honestly, I'm not entirely sure they aren't a troll.
Drag doesn't want to be referred to gender neutrally. Drag wants drag's gender affirmed. It isn't hard. You're going to all this effort to switch between "you", "they", and "them" based on complicated grammatical context rules, when you could just use a single pronoun in all cases. You're going to all this effort to inflect pronouns that drag doesn't want. Drag just wants you to take it easy and use a single pronoun. Why make things hard for yourself just so you can make them hard for drag too?
Let drag rephrase. What exactly do you gain by refusing to refer to a trans person the way that trans person wants to be referred? A hypothetical moral high ground in a semantic disagreement? Is the point just that you want to be right in the argument?