The wave of Chosen had spread over the Realm of Bloodlines, over two billion humans thrust into the realm, but not everyone was a human Chosen. Bloodlines were not simply a power that was granted; many bloodlines decided the race of that person.
In the game, many started off as humans, and later their bloodlines decided their final race, but it wasn't so in this case.
As soon as they got their bloodlines, their genetics were warped and distorted, causing physical and mental changes.
Some could get the bloodline of the Chaos Dragon, which would make them into a dragon. They still had their human forms, but their blood was totally of the dragons, and the more they awakened the ability of the dragon, the more their new reality tilted toward that race.
It was a method the game used because it didn't want to let all players be humans in a realm filled with a platter of races.