What is the blue stuff in there?

Unfortunately, that is the normal size of a Venus-flytrap seedling when it sprouts,
and it will take about three years for it to make decent quarter-inch size
trap. Another year or two to reach flowering size, by then the traps should be
big enough to catch flies.

By the way, you cannot use the cultivar name ‘Red Dragon’
since plants grown from seed may lose some of the attributes of the cultivar.
Cultivars are proliferate via vegetative propagation to maintain the uniqueness of
a particular clone.

Good luck!

It looks like you have some Drosera capensis growing in that cup, too, unless it's just a plant that look s similar.

Try to give it more sun. The main way that the VFTs grow and get energy is from the sun, since even some bugs they do manage to catch are not a great meal. It's not like they get a big boost of growth energy from one bug.

You may have just watered recently, but otherwise, that pot seems very wet. It may be overwatered for that one little plant.

Mine sit in water trays all growing season. Outside of coarse in full sun.