I am in chatting with the Dragon. He will recognize the sacred word, and launch into his speech, but when I try to "give" the Shroud to him nothing happens. I saw some similar posts last month, but no real explanations. Has anyone figured out what is going on here, or is there a workaround?? Would appreciate any help. TIA

Why are you typing "give" rather than using the use/give option?

I am using the use/give function, like in the rest of the game, but he does not respond.

Make sure the option is 'Give', not 'Use' (the one you're doing is highlighted in blue). Then just make sure you click on Erathsmedor after having the Shroud chosen.