All right, I've read both parts. As basic impressions go, I liked the Prologue far more than Chapter One.
I found Vernack and the dragonets far more interesting than the humans, wizards, or elves. I find that elves are just overused, so much so that I don't really care much about them. Dragonets, however, I really like. From the Prologue, it seems that the dragonets are a force for stability in the world, by dispersing around to different factions. The telepathy makes that task easy, since they can all know what is going on in the world. It makes me curious what the dragonets really want, and how they were created. Very good with the dragonets.
Same with the drow. I always want to hear more about demons.
On those two worldbuilding fronts, very good job.
Elves, though... Meh. Well, in the Prologue, it was good because the elves and the wizards are obviously not on good terms. I found the part when Garrad killed them to be very good. In chapter one, on the other hand, I just don't care enough about the elves. Their only distinctive property from other elves in other stories is that these ones appear to be shorter. Other than that, they aren't really fascinating subjects.
At first, the use of the <> got on my nerves, but once I got to the first chapter, I realized you wanted to distinguish the dragonet's telepathy with internal thoughts, and I think that decision makes perfect sense.
Major question: I want to know the significance of the Queen's Opal (I presume the Demon Queen is the Queen referenced there). As of now, I do not see why it would motivate Garrad so much. If Drynn is your main character, though, I'm sure you will explore this question in greater detail. You may want to explain at least a segment of its importance now, because right now, I'm not seeing it.
I'm interested as to whether the elves were actually the cause of the Drow War (releasing the demons, I presume) or that is just stretch of Garrad's. That is one nice thing about your elves: they are not superior to other races, it seems, as the normal Tolkienesque fantasy would have them. That is such a nice change of pace.
I do have a couple of critical problems with the way the story is written as of now. It's not bad, but it feels
really telly. For example:
Garrad didn’t even try to deny it. “Well we’ve seen what happens when you try to be our equals.”
"Garrad didn't even try to deny it" is a very telly statement.
Show me Garrad didn't try to deny it. Now, my policy with show-don't-tell is that it is okay to
sometimes tell, but those "thoughtshots" where you get to tell should be thoughts or interpretations from your viewpoint characters. To me, it felt like there was way too much of Vernack interpreting and not enough showing.
That was probably my main problem with Chapter One in a general sense. Right in that first pragraph of the first chapter, it's telly. The whole thing doesn't have enough showing for me to really feel for Drynn. As it stands now, I don't really care a whole lot about Drynn. I don't know if that's a problem with the character himself or the way he is presented, but either way, I didn't get a feel for him.
The only thing beyond the telly-ness of it is the over-use of bizarre dialogue tags. I see what is going on here: you don't want to use the word "said". Now, a quick use of ctrl+f on your manuscript and it comes up somewhat in Chapter One (none in the prologue), but when verbs like "reported" start appearing, I get a little worried that you are a bit overzealous with the dialogue tags. For example: " “She is gone,” their father reported with a vague expression on his face." Is "reported" even necessary? It doesn't exactly add a whole lot.
It's okay to use said. It's okay to use it a lot. The thing with verbs like "said" and "asked" is that they are transparent--it does not bring attention to itself, it brings attention to the dialogue. "Reported" is stretching it. We
know their father is reporting it just by the virtue of what is in the dialogue. The dialogue, in that case, is interesting, not how it is said. I mean, if you switched it to "said" there, you really aren't losing anything, because we still get the prepositional phrase which describes it further. So... yeah, don't be afraid of "said". It's used a bunch and it's okay.
In review, I am a lot more intrigued with Vernack and Garrad than anything that Drynn is doing.