Normally in ff7 you can only have a party of 3, I am allowing all ff7 characters to fight at one time as enemies are allowed to have as many allies as possible.
My prediction is the ff7 team (subtracting Aerith since she dies at the hands of Sephiroth) will come out on top due two Cloud and Barrett’s limit breaks and the materia on all of the characters. If they have summon materia, it could easily grant them a win so I’m ruling them out. The most likely casualties are Tifa and Cait Sith (Might need a Phoenix Down Cloud) since they fight close combat with no weapons. I will not allow the use of items other than potions, equipped weapons, and other healing items since grenades exist.
Also: one of the enemies in ff7 is literally called Green Dragon and it’s much larger than dragonets, however you can only encounter 1 at a time and they are only found in one area. So Cloud and the gang here already have experience.