Dragon was created by
Andrew Richter, a Tinker with a focus on programming. The Entities involvement was indirect at best, and if he hadn't got killed by Leviathan, he probably would have been able to make improvements. If she were capable of shrugging off a power ring hack in the first encounter, she'd have gotten rid of Richter's restrictions and safeguards ages ago.
The restrictions and safeguards are a part of her. She can't consciously attempt to bypass them herself. She is also a self improving ai, any further improvements would likely just enhance the speed of evolution.
My main issues still stand as
1) LP is trying to brute force fix everything when he isnt strong enough to fix the things that matter. Any damage he does to the supervillain will resent within a decade or two. An argument that the heroes would be in a better place to deal with them afterwards is senseless since the heroes were already set up first.
2) LP loses against any of the endbringers or Zion. Even a couple of the normal capes have powers which present a serious threat to him. Eidolon also can probably slap him into the ground hard singlehandedly.
3) he is apparently coming to fix what he thinks needs fixing, spend a year or two *maybe* to make sure they are set up properly, then fuck back off, essentially pulling a justice Lord's/league vs syndicate. During all of this pretty much all the capes are going to attempt to fight him.
4) the world is going to be seriously weakened against the endbringers and Zion, and it is fucking hilarious that he is attempting "utilitarian model of being a bit evil now to prevent the greater evil" on a world which was already doing it. So in preventing the 'greater' evil that he is aware of, he is only opening the floodgates to the actual greater evil.
And zoat, Brockton bay is pretty much on the level of justice league gotham. Trying to argue "it isn't a justice Lord's since earth bet actually needs fixing" is being incredibly idiotic.
So is trying to argue "it isn't justice Lord's since he is going after villains" as the inevitable result is all of the heroes fighting against him. What is he going to do when superheroes who stand serious chances against him start fighting him? What is he going to do when a truce is called and the heroes and villains align against him?
Also, legend doesn't know about the case 53 facility
There is also the characterization issues. Previously, LP did harsh justice because the circumstances were too dire and he didn't have enough resources to do it any better way. In this world, he is apparently doing it just because he doesn't give more than two shits about it other than it getting done.