Unfortunately Tyto's actions seam to have little to no effect. The beast growls showing her teeth and sweeping water and ground with her powerful tail.

Sabynn only

 Narr

As you came to the front of the house, you can see the door have deep fresh groves, as if carved by huge claws of an animal. The door are barely holding but are backed up with something from the inside. No-one replies to your calls. from the inside of the house.

Wiri

Well, the creature is clearly aggressive however the family keeps behind you terrified. the woman is just next to you with her shield and broken spear.

Swan

You get to Narr and see the same door with claw marks. The scratches are deep and the door are barely holding.

You call to the people hiding... (Persuasion check 9).

((Wiri slightly alters her "readied action." If the creature takes any aggressive action other than moving away from the party, she'll cast cause fear on it, DC 14 WIS save))

Wiri - no problem but please remember, that reading a spell will burn your spell slot regardless if you cast the spell or not. Is that acceptable?

Cerau's turn.

Cerau places the child she was carrying down and steps in front of them, following Wiri's lead. She pull her mace from its harness on her back and steps forward towards the creature, holding the mace high in the air and preparing to bring it down onto the creature if it manages to get any closer.

"I don't think it's friendly Wiri, release the spell!"

Cerau braces herself for what she senses will be a tense encounter.

Sabynn too places herself in front of the family, ready to let loose another arrow at the first sign of agression from the draconic beast.
Ready action, Elven Longbow: 18 Piercing: 10

((Yes that's fine, I feel it's what she would do))

[OOC] Mace attack for if Wiri's spell fails and the beast comes closer. To hit: 17 Damage: 4

"I agree. We must repel this enemy before we may be confronted by others."

The half-drow decides that holding off any longer may put the children in unnecessary danger, seeing as they're hunkered down in the middle of a battlefield. As she releases the spell, something unnatural flickers in her appearance and--for the very slightest moment-- the drake (only the drake) would notice crooked, horrifying spider legs jutting out of random parts of her body. As the legs disappear, Wiri's face glows with sublime radiance, hoping to strike fear into the ambush drake's heart.

((it needs to make a DC 14 wis save or it will be subject to cause fear))

OOG - I think one of my posts went rouge so my apologies :)

Narr and Swan

With both of you at the door, you can hear somebody inside. "Who... who are you?" a scared voice of a young male comes from behind  the damaged door. "There... there is some monster running around... We cannot leave!" the boy almost cries.

Wiri, Cerau, Sabynn & Tyto

The creature’s eyes moved from one side to the other looking at every one of you, as if counting the chances. His forked tongue moved in and out of it's mouths. In a flash he moved towards Wiri opening it's mouth.

Wisdom save: 13

The creature growled. Wiri has seen its diagonal pupils expand with fear. It missed his attack as at the same time he tried to take a huge bite out of Wiri and move away from her. (Creature is frightened)

At this very moment Sabynn hes let her arrow loose hitting its leg (-5 hp) and Cerau took a swing with her club hitting its snout (-4 hp).

The creature scratched itself with a back leg breaking the arrow and took a step back. 

Turn 2 begins.  

Well, the creature seems to have made its choice... I hope it will at least have a quick death.

Tyto grabs his staff, casts Shillelagh as a bonus action, and then leaps forward while raising the blooming and thorn-covered staff with both hands high above his head, before bringing it down with all his strength onto the drake's head.

Staff with Shillelagh attack roll: 26; Damage: 8

Moving agilely sideways to get a clears shot, in one swift an fluid motion Sabynn draws another arrow from her quiver and lets it loose on the draconic beast.
Elven Longbow: 26 Piercing: 12

(Extra crit damage: 8 )

“They must be talking about that beast.” Swan says softly to Narr, her amber eyes locking onto the four-legged reptile.

“My name is Swan.” Quickly, Swan says to the young boy inside the burning house. “Are you hurt? We’ll distract the it, just make sure you stay safe!”

((Are the kobolds still around? How far away is Swan to the beast?))

((I think it's back around to me already? Readying an action doesn't change initiative order, does it?))

Wiri, with a forceful but slightly sorrowful look on her face, traces a golden triangle in the air and presses her palm into it, releasing an eldritch blast at the ambush drake.

Eldritch blast: 15  Damage: 6

The fury of blows was reaching the creature. With a desperate cry it tried to move back away from you but the lats arrow shot by Sabynn has reached it's head. The arrows' feathered end is stuck between it's eyes and the creature drops dead. A streaks of blood are pouring from its mouth and snout and are mixing with the stream water.

The creature is dead.

Back by the town house, Narr and Swan hear silent discussion. The voices are quite faint but the discussion must be heated as from time to time you can hear one or two louder words.

For clarity:

Narr and Swan are at location 1

The rest of the party and the family of 5 are at location 2.

The corpses of ambushed kobolds and drake are at locations 3 and 4

With Y'landrothiel still keeping a lookout for approaching threats, Sabynn hurries up to Swan and Narr. "We've taken care of the kobolds and the draconic beast, but others may come any moment, we must hurry!" She says quietly but with strong urgency in her tone.

Y'landrothiel perception: 23

You can hear some of the furniture being dragged on the floor. The door move an inch. You can see an eye of a young man or a teenage boy rather. His hair are in disarray. A few smears of blood on his cheeks from a cut on his nose. "Are they gone?" he asks with a trembling voice. Behind him you can see a room with couple of chairs turned over.

As the adrenaline rush fades, Swan's breaths begin to slow and her racing heart calms down. Relief washes over her as she sees that the kobolds and the beast have been dealt with by her competent companions.

She looks into the door and says to the young boy, “Yes, they’re gone. It’s safe to come out.” Her eyes glance at him and inside the door. “Are you hurt? Are you alone?”

He pulls the door by its edge to make an opening. After a third pull, one piece of door breaks open but the opening is big enough for an adult to squeze through.

"I'm with my family." He replies looking back.

In the main room, there's another young boy in similar age (ca. 11 years old), perhaps a year younger. He is dressed in similar fashion - regular, linen trousers, shirt, leather shoes.

In the back, you can see a ladder and a grown woman helping a very young girl, who keeps a cloth doll in her arm.

The girl has red eyes and streaks of tears carved in dirt covered face.

"We thought... " He begins and you can see he is on the verge of histeria but he does his best to keep up with the situation.

"We need to go, mum... They may be back..." He says to the woman who grabs the little girl on her arm and moves to the door.