Mm, we do. Dragons are part of the natural world we live in. They aren't commonly found among humans, but they can be met.

[He's happy to talk about more familiar aspects of being a cultivator that he hasn't had to do for a while.]

There are also other creatures, but they are more... bestial in nature. Not ones like yaogui that may be spoken with. They hunt and kill, like fierce corpses, without much thought beyond that.