You know as a Crash Bandicoot and Spyro fan it makes me very angry to learn that Activision made Toys For Bob cancel what would have been a great Spyro and Crash crossover game in favor of yet ANOTHER stupid live-service game that is likely going to be stuffed to the brim with annoying and completely unnecessary and pointless microtransactions. Seriously, enough of this microtransaction bullshit. I can't see any reason for them to even be a thing other than for reasons of companies just being greedy for additional money when they already get plenty of money from game purchases alone.
As for the fight itself, it depends on how comfortable you are with the controls and game jank. You should definitely have a bow and enough arrows because you'll need to hit some remote targets in the air. Diamond armor would be helpful too, and some healing options are a good idea as well. Optionally you could bring some empty bottles if you want to collect dragon breath clouds that'll be left on the ground during the fight.
Beyond that the dragon isn't really a big deal. You definitely have to go way out of your way to enter this fight, so if you don't want to do it, you can just keep playing the game normally. This isn't something you can stumble into accidentally.