I took a bounty quest from the Inn keeper in Windhelm thinking "Oh it's just a bounty quest where I have to kill a dragon! Easy enough!"
WRONG...
The bounty is for the dragon at Bonestrewn Crest (in the middle of the basin near Windhelm) upon arriving at Bonestrewn the dragon is flying around like normal but as soon as I engage combat it starts spazzing and flying 10x the normal speed...mostly backwards. It also will occasionally do a wobbling motion like he's trying to mock me, it never attacks just flies in gets stuck in some trees until I get its health down to 1/3 and then flies off PAST WINDHELM (I know because there's a quest marker on it and can monitor its movement on the world map). It then flies up too high or far for me to reach, breaks combat, and regains all health then flies back in and freaks out again.

In addition if that's not bad enough when the dragon does comes close enough to attempt to hit (as it breaks the sound barrier flying by me backwards) it often pulls me into the lag causing the frame rate to drop below ~1 frame per second, this typically lasts 3 seconds the time needed for the dragon to reach warp 7 and zip across the basin. One time however the lag lasted ~5min. and it got so bad I couldn't even walk causing me to reload. (the lag does not affect the menus)
The glitch seems to affect anything the dragon gets near as that mammoths begin to fly/levitate when the dragon gets close to them.

As a side note: I have killed a dragon at this word wall before, hence my assumption is that it has something to do with the bounty or the recent update. (I killed the previous one before the update)