I am just going to point out the fact that.. well middy can change size freely between adorable shoulder-pet and rideable dragon size.. so it stands to logic that other dragons may be able to do the same.. its really not too far fetched to think that a dragon and an elezen or hyur (or whatever predated them) could have.. ahem.. worked something out..
It has always seemed fairly obvious that au ra are dragon-themed, if they had wings female au ra would literally be dragon fairies.. the entire "they are based on demons" thing frankly never really held much merit to me when they have dragon horns/scales/dragon-like tails and possibly-glowing eyes. Ask the people of Ishgard, they agree (too much..)
As long as the first brood has been around i wouldn't be surprised if they traveled /alot/ in their earlier years so it is likely that they would have had plenty of time to interact with an innumerable number of people, there is also the possibility that one or several of their children evolved into a humanoid being over time for whatever reason since dragons are known to continually evolve over their eternal lifespan and wind up very different from one another.
Or it could have just been magic of some kind or another as others have said.