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I'm not pulling this idea out of my ass... xd
Simply, if there is a toad sage mode (and toads exist) and there's a dragon sage mode, then it might mean dragons exist as well.
There is no Dragon Sage Mode. What you are referring to is Snake Sage Mode. When Kabuto said he was now a dragon, it was a reference to a Japanese folklore that when snakes get powerful enough, they turn into dragons. Kabuto was using it as a metaphor to emphasize his ascension to power. He used this metaphor because the place he went to to learn Sage Mode was based upon Dragons, which also references the snake to dragon folklore.