Thank you so much @Jaybee63 i was ready to totally lose it I just got that tree last year and I think it’s doing great, plus it’s the dogs shade spot!
Search lichen, it tends to grow on a plant which isn’t growing well, so having read your fertiliser post, perhaps the compost is old and exhausted
Good morning Lisa, totally agree with J @Jaybee63, it is lichen and will do ho harm to your tree whatsoever. A repot next Spring or even a slip pot now will help the vigour of your Red dragon.
Lichen is also a sign a clean air and a good environment. On main stems, it's certainly not an issue, if is starts to overwhelm growing twigs, vigor may be a problem.