I feel like I'm missing something major here.

I cast Mirage Dive while under the influence of Blood of the Dragon and the dragon gauge is supposed to fill by 1 right?

Well nothing happens it just remains empty. I've cast many many times during fights and it never fills at all.

Also under traits my Life of the Dragon looks like it hasn't even been activated for some reason. It's very dull unlike the working ones.

Is there some quest that I can't find? Alberic has nothing left for me and I can't find anywhere else to go.