@Invisiblestorm
Kobayashi growing a "thing" (I actually dont think she really became a man, more likely just grew that extra thing, but they treat it the same way) definitely gave her a more forced perspective of what sexual attraction is like, but that's more of a hormone thing. Her romantic development has been a lot more subtle compared to that. I like to seperate the two, because Cool-sensei is a pervert who always has to be excessive on the fanservice, but when it comes to emotions or real feelings he surprisingly gets it right mostly. Imo Kobayashi just in general had a low sex drive and her mentality of feeling inadequate as a woman led to her not pursuing romance at all, which is the reason she never figured out she is les/bi.
Well, that's the best explanation to me anyway. Being hormone overdosed into directly being sexually attracted may have helped.
@JoonLegacy
I'm not exactly expecting a comedy author to be 100% up to par with yuri authors naturally, so the heteronormative phrasing is just par for the course.. But I think the emotional attachment that seems to be turning into romantic affection from Kobayashi's side are standing pretty strong on their own. The dragons are easy, because he just made them bisexual omnivores, but to make Kobayashi's acceptance of her feelings believable was way harder. The chapter where she confessed last volume was definitely the best step forward. The genderbending stuff is just an extra. At least that's how I can look past that awkward expression of sexual attraction.
@Moneymike1995
If we just look at this chapter in isolation I may have seen your point, but that's impossible with how the last volume went. All these Elma chapters drew a pretty clear picture, especially chapter 96. You may be right that Elma knows something will happen soon and that she is apologetic because of that, but Elma having feelings for Tooru is not somehow mutually exclusive from that. Sure, this chapter probably foreshadowed the next conflict, but at the same time the topic of romance was super prevalent here and it points at Elma not having an interest in forming a deep bond with humans (remember it was said Elma distrusts humans almost more than Tooru ever did because they used her). She just views this entire human world thing as a short blip on her radar. She has always been surprisingly okay with Kobayashi making sexual advances on her (even if she just imagined them)l, but it was more like "If it has to be a human, Kobayashi might be fine".
The only person she is really close to and who can stay at her side is Tooru and the fact that she was so flustered when Kobayashi suggested they travel together is super suspicious. It seems to me like Elma views it as cheating.