Hmm - what did the Empire mean here?

In episode 8 of PDO, during the boss fight, the imperial soldiers say - “We can now make Dragons on our own. We do not need you drones!” - How did the Empire get past this little speedbump?

They only thought they had. It was Abadd who re-activated the Cradle, but I think the Empire didn’t realize that, and thought they had re-activated it themselves.

They meant the cradle, and were being arrogant. They could make ‘dragons’, but only with Abadd operating the cradle.

I think D-Unit’s pretty much got it. Abadd exited the Sestren system at the end of Episode 7 and went straight into the Cradle, activating it so as to enhance his dragonmare. The Empire obviously didn’t realise that Abadd was responsible for the activation, as the cutscene prior to Episode 8 shows:

**Grand admiral Sir!
Th-the Cradle! It’s been activated?!

Excellent. The time has finally come
to awaken the rest of the dragonmares!
Soon, with the power of the dragonmares,
the world shall once again belong to man!**

The Empire obviously thought that the Cradle was theirs to command at that point. Of course, when the incomplete dragonmares were finished off and released by Abadd at the beginning of Episode 9, the Empire presumably realised their mistake (i.e. that the Cradle wasn’t under their control).