Yeah, that game (and the published adventure), among several others, was based off of on of the many,
many novels in the Forgotten Realms Setting. In D&D, a dragon is supposed to be like Smaug: the crescendo of an adventure or even a series of related adventures (a 'campaign'), so you'll usually only ever encounter one or maybe a very few in an adenvture. I only read Azure Bonds once and about 30 years ago, so have no idea about its dragons, but only encountering black and the dracolich makes sense. The dracolich (undead dragon) was specific to Forgotten Realms (and Greyhawk, IP owned by D&D founder Gary Gygax, AFAIK), and it's not a race, but the result of big bad juju from a cult [of the dragon] on a dead (i think) dragon of any dragon race.
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I'm a huge nerd, as you can see