Keep trying. I lost a couple of times with diamond, ignus and lost love dragon. Congo was the only opponent I lost too but eventually something will work. I believe bash took him out so use bash instead of magic. All dragons were lv 15.
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Whew....after a reset, got him with Mithril at 12. I had just fought him with my Diamond at 15...again...and the game reset so I could fight again immediately but my Diamond was still beaten so I gave Mithril a shot. It was starting to get stressful as I am behind in Tales right now, I'm still on day 8 (win one fight with Festive Lights).
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\o/ completed