Protection from the dragon and the meal plan of the dragon, those are 2 different things. According to the latest rulebook:
- the fairy can only protect 'followers' or better 'it protects everything on a single tile where 1 or more followers are standing on'
- but the dragon eats all that is flesh and blood...so no barns or towers, castles or bridges but builders, pigs, mage and witch, abbot, shepherd, mayor and even a wagon (the crew on the wagon is made of flesh and blood) or a phantom isn't safe for the almighty dragon.