Does Small World's Dragon Master allow conquering non-adjacent regions?
The Dragon does not fly or give the race flying.  (Therefore you can normally* only conquer adjacent areas).

The Dragon does not do the conquering, only allow you to conquer an area with a single race token.  You place the Dragon after you conquer the area.

*normally used as I don't have all the expansions and for all I know there is an edge case out there!