It’s an undead baby dragon, produced by a failed magical spell. It probably would be cute if it weren’t partially decayed.

Young dragons are relatively defenseless. They are born with relatively soft scales, which are shed and replaced with harder ones as the hatchling matures. Once a hatchling’s wings grow in, it typically marks the beginning of maturation. At this point they are often capable of hunting on their own and are usually left alone by their mother.

This dragon was said to be simply a ghost story. A myth. Nonexistent. Just something the mother dragons warn their hatchlings about to make sure they stay in bed at night. Recurring Nightmares, or "Nighty" as he was nicknamed by the Vampires in the area, his only friends, is actually very shy and friendly, despite his rather disturbing looks. He wishes he could play with the other dragons, but none of them will let him near them, as they seem to be under the impression that he'd turn them into zombies too.