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It is believed that dinosaurs feathers and later bird feathers came from bristles that evolved out of scales.
I think the mutations inherited the earth as the meek because the giants could not cope. The mammals, the birds and reptiles inherited the earth as the meek with their most worrying predators wiped out the world became theirs. They flourished and continued evolution.
The dinosaurs did not become extinct. The birds are here and so are the reptiles. They just went different ways. They evolved into mammals, birds and reptiles.
The evidence seems to point at the dinosaurs disappearing at the same time universally, in a very short space of time yet life was able to go on. Whatever happened was not a total cataclysm as the mutations they gave rise to are them in another variant, out of the same DNA and species ancestors.