Here are some results during testing Megahouse breeding mechanics in Dino Device 1. Feel free to add your own!
So far, testing seems to indicate that the child dino will pick one of the parent styles and add one star to their rarity (maxing at 3, you cannot breed Centaurus or Eridanus and hope to get Draco) and breeding two 3s will always result in Eridanus. Also, for breeding purposes, Draco is a three star mon.
Parent elements appear to have no bearing on child element, which seems to be random in favor of the player's emblem (my game has Terioranus and leans heavily toward Neutral and Fire results as expected.)
