Yes, it can spawn in 3 locations and it can be killed for the Killing in the Name of...Quest.
1. PoH Dragon Lair (here) on the way to the Ornamented Shield Quest
2. PoI Dragon Lair (here)
3. Thais Dragon Lair (here) on the way to the Naginata Quest.
For Killing in the Name of... Quest, the special task teleport is located inside the PoH Dragon Lair, here.
Source: https://tibia.fandom.com/wiki/Demodras
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