I didn't even know the Dragon Challenges existed. I barrowed this game like 11 years go from a friend and I only played just the single player campaign and boy was it HARD. I used to have Spyro A New Beginning and I was disappointed that there was so side content to do outside the story :(
I don't think so. Some of them are hidden in boxes in the Pirate levels. There's also a few well hidden in the Grove, such as where you need to destroy a hive or knock down trees. It's a shame the game doesn't really give you much of a guide or hints about them.