Sir Callie and the dragon's roost / Esme Symes-Smith.

Enhanced descriptions from Syndetics:

The battle is won, but the war is far from over. In this thrilling sequel, a twelve-year-old nonbinary hopeful knight fights for the heart of their kingdom in a magical medieval world filled with dragons, shape-shifters, and witches.

Thanks to Callie and their friends, Helston seems to be changing for the better- Boys are allowed to explore their magic, and girls are permitted to train as warriors. Callie is an official Helston page, Willow in on track to become king, and Elowen and Edwyn are finally safe and free of their father. Everything is...perfect.

Except it isn't.

Not in Helston, where every step forward is accompanied by a storm of opposition. Even Queen Ewella and Sir Nick are struggling against the wave of fear and anti-magical sentiment growing daily, while the encroaching threat from across the bridge looms.

Callie isn't foolish; they notice the suspicious glances thrown Neal's way and hear the doubtful murmurs following Willow. They know what people think about them, too. Tolerance is not the same as acceptance, and when the fragile peace finally shatters, Callie and their friends have no choice but to leave their home and run.

On the other side of the bridge, old secrets are revealed and new allegiances are formed that will throw into question everything Callie thought they knew about their world. Including what it means to be a hero.