Red sands is quest made by some sadists. First you get it in scarlet wind to take quest then loop goes something like bolo-uzala-montero/verona-uzala-bolo-nameless-elon-reha-redsands.
As for pet dragon dive it`s nice, but mid game (around montero/dersu) it gets almost useless for dmg, but you can get it to 52rage for all map dmg so not bad. Lightning ball is sickest combo in game with gorguana`s blood mark it can kill 95% stack. But considering mage`s double cast, with warrior`s supremacy in rage department mage win every time. But warrior isnt just about rage, but about high att/crit chanse

so use dragon for opeaning battle and then mana regen/chests because no mater how high pet dragon`s lvl he just wont make much dmg considering your units.
And no need to start new playthrough just check what items you have in that1, and plan your build considering it. Decide what companion you like, and take best units for him, for expl dont lead moro dark, and elf`s or triger with all dragon army

Awaken dragon not found till verona, dont sweat, i happened to find it chests, or lying around on other islands. But also had game with no stone skin in it

So anything is possible.