Everyone knows Dragons exist, and that they are powerful creatures
Nobody ever expects to meet a dragon
The idea of dragons secretly manipulating humanity is a conspiracy theory on par with our world’s idea that many world leaders are secretly reptilian aliens; there are certainly people who believe it, but sensible people don’t take it seriously. (For more information on this entirely preposterous theory that has absolutely no basis in reality you can look art Chapter 15 of CoE)
Stories of dragons are plentiful and anyone from Thrane knows of the Bane of Thrane, the Dragon who killed Prince Thrane.
Everyone knows that Argonnessen is a land of Dragon, but know nothing more that “here be dragons”
And that nobody who goes there ever comes back
A few might know that the Dragons occasionally attack Aerenal, and the Giants Xen’drik were destroyed in some kind of war with the dragons