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Hello! We can confirm that the Dragon Phial indeed gets boosted by both Convert Element and Elemental Absorption. We've also added this info on our pages. Hope this helps!
Does this activate with those few switch axes that have no element but do have the "dragon phial" as long as you're attacking in sword mode to activate the phial?
If you aren't using Dragon elemental attacks the extra damage doesn't apply. The dragon burst / blast can be built up and triggered by any element.
is the increase dragon damage is additional passive? or it has to be status active to increase dragon damage?
the way it's worded it sounds like it works like the flayer skill. I'm assuming that you get hit with elemental damage which activates the skill, then dealing any elemental damage will build up to a burst of dragon damage, kinda like how blast works.
Does anyone know if this skill overwrites your current element if active or is it on top?