User blog comment:7-45 Fire/How Fairies came to be./@comment-29197449-20170812042549

Aside from possibly forgetting the lore they already placed, this could also be a case of there being different origins for different types of fairies; the Earth Fairies have been told for generations that the Ancestral Fairies were the first fairies in existence that crossed over from the world of legends to the real world while fairies that resided elsewhere were taught that Arcadia was the first fairy. Y'know, kinda like how there are many many different takes on the origins of mankind depending on where you live.

Though, from what I can piece together, Arcadia was, in fact, the first fairy to come into being that people knew about. Because the Ethereal Fairies, beings that exist outside of time always resided outside of time, no one would ever be able to know about them, while Arcadia was most likely born from the Great Dragon's fire like all other magical beings. Graynor probably became the home of Arcadia's descendants as she had to move into the Golden Kingdom to watch over the Water Stars, which could explain why some think that Graynor would be the ancestral home of all fairies.

As for the Ancestral Fairies, they could be the first fairies that set foot on Earth. They didn't necessarily have to be Arcadia's descendants and could have very well escaped Acheron's Legendarium to make Earth their home to eventually create the specific race of Earth Fairies. It's a little convoluted though, and I'm aware that I'm reaching a bit here.