Just to be clear: you are inside the main bridgefort defenders area where the wardstone first takes you (not in the ramparts above/outside)? There are a lot of filler NPCs there, so make sure to use tab and interact with each of the named ones. The smith is a dwarf, I believe.
Also, you haven't gone through with attacking/surrendering to the Crusaders yet, right?
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Bloody dragon did not give me scales when I killed him.