Lol, yes, the dragon's torso turned into a man. That man does show up earlier in the story - I think perhaps the model so closely associates dragon stories with stories of men, it just desperately wanted to add one in? The text itself never actually mentions the man/dragon/torso.

If Gemini added a reflection step to its book drawing routine, I think the model could easily notice the errors, and generate images to correct them - the errors do not seem unsurmountable.

Given that, I'm assuming Amazon is or will soon be filled with decently illustrated somewhat amusing stories.