I get the feeling that option 1 was entirely serious, the joke was mentioning it to someone who would absolutely never go through with it. Though with how certain Kris mentioned it I wonder if it's something that has happened before.
I get he cares about the lives of dragons but damn, it's not like Kris suggested outright killing a dragon to eat. I'm sure there ways to eat a dragon without getting Cyril's panties in a bunch. Like a terminally ill or critically injured dragon
Feels a little tonally dissonant that mr. Protag is all "dragons are people too, you shouldn't treat them like tools" and yet has 0 qualms about killing and eating other non-dragon animals. Obviously he knows that dragons are more intelligent because he can hear them speak, but I feel like if he didn't have that innate ability he would be treating them the same as everyone else does