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The Dragonic Diligence can be acquired by giving 90 Mini Medals to Medford Medallion, winning at after competing in Rank A at Slimopolis or buying it in the secret post-game shop for 30,000g. It can also be found once in a chest in Mortamor's castle.
The item must be placed in a character's inventory, and it can then be used to take up the Dragon vocation in Alltrades Abbey. It is a consumable, so once used you cannot take back your usage of it.