You clearly don't read my post eh? it's because Aoi's ability getting overwhelmed. Are you ignoring the fact where Aoi explains to herself that she can't erase a monster because of a difference in power terms? that's enough to claim it's not PM.
You are interpreting Aoi claim wrong there, buddy.
In here we can see Aoi clearly capable of "affecting" the dragon by believing (using her personal belief AKA JUST WORLD) that such a big animal couldn't possibly fly, thus the dragon fall and unable to fly.
Next she says "I can't do anything that seems impossible to me, and those with high fate levels."
This is relevant because in the scan below (the scan you use) it says this.
Hanakawa never ask Aoi to erase the dragon, he only ask. "CAN YOU DO SOMETHING ABOUT IT?!"
Aoi then reply, "It make sense for a reptile this large to exist."
This is not because Aoi is weak, it's because SHE BELIEVE a reptile this large exist, thus her power which based on her personal belief couldn't erase the reptile.
Again, it's not because Aoi is weak thus she cannot erase the dragon. It's because the machination of her ability which based on her personal belief (JUST WORLD) only work if she truly belief on something. In this case, Aoi belief such a reptile on that size actually exist, thus she couldn't erase them.
Can you really convince yourself that a monster in front of you doesn't exist?
It's Impossible, hence the whole Aoi statement of she cannot do something that impossible to her alludes to this.
But on the other scan, Aoi belief that Reptile on such size couldn't fly despite having large wing, thus she cannot fly (the dragon is female btw).
Please don't deliberately put the next scan, yet not the scan where it allude to the next scan.
The context lose if you do that.