Qartheen Fanatic :

Qartheen Fanatic gets +1 STR and a Military icon while there is a Dragon character in play.

Blood of the Dragon :

While participating in a challenge, attached character gets +6 STR and gains the Dragon trait.

So the question is, if I attach Blood of the Dragon to Qartheen, does he count himself for his passive ability and get his bonus ?

Also, if there is Daenerys (QoD, "Dragon characters you control do not kneel to attack") in play, does he need to kneel to participate in the challenge or does he get the dragon trait just after he is declared as an attacker (and then would be already kneeling) ?

Once he is participating in a challenge, so that the restrictions on Blood of the Dragon are met and he gains the Dragon trait (and +6 STR), his own ability will kick in, giving him +1 STR and the military icon. So, assuming there is no other Dragon character in play, once you declare him in a challenge, the Fanatic will get a total of +7 STR, the Dragon trait, and the military icon.

The important thing to recognize, though, is that Blood of the Dragon does not kick in until after the character is already participating in the challenge. That mean the Fanatic will never gain the MIL icon until after it is declared - meaning that it will not have the icon when it is time to declare attackers or defenders in a MIL challenge. So putting Blood of the Dragon on the Fanatic (with no other dragons in play) will not allow you to use him as an attacker or defender in a military challenge - because he gains the icon too late to be declared.

Same thing as the icon for the Dragon trait and Dany. Blood of the Dragon will not give the Fanatic the dragon trait until after he is already declared as an attacker - which is too late to qualify for the attacking benefit from Dany.

Thank you, that is exactly what I was wondering