Friar Peter claims to carry a talon that belonged to Draco, but Draco's claws were black, not white.
At the very beginning, the camera shows a pig moving toward Geoff. When the camera angle changes, the pig is gone.
The egg containing Drake is enormous compared to those in Dragonheart 3: The Sorcerer's Curse (2015), but then again, this film was released before the prequels.
The scene of Drake and Geoff flying after Drake saves him reuses some footage from the first film, namely when Draco flies toward Lord Felton's village and later Kara's.
The shot of Osric's men on horseback going to face the Teregoths and Drake flying above them reuses footage from the first movie's opening.
The scene where Drake produces ignited flatulence and accidentally destroys the mill uses partly reused and unused footage from DragonHeart (1996) when Bowen and Draco attacked Lord Felton's village and a second-long bit of footage from Kara's village after Draco flew off with her.
Kwan's hand movements are several seconds late when he says, "Turn that way so you don't hit the mill. Then let it all out."
When Master Kwan and Lian meet Friar Peter, the monk has a claw that he claims came from Draco, but Draco never lost any claws during the first film. However, he did lose one in the novelization.
The film itself shouldn't technically exist, but for reasons unknown, a change in the original film's screenplay made a backdoor for the sequel. In the initial Dragonheart script, the next-to-last dragon before Draco was male, but it became female in later revisions. Therefore, Draco and the now-female dragon were probably mates, making Drake their son and giving the sequel plausible cause to exist.