)
It's made pre-worshipped.
It's a goof on how named items will typically have fancy descriptions about them. Sometimes those descriptions don't make much sense.
Edit: Okay found the thing. It's not a sword but a talisman, and TvTropes put it best:
"Killing a nameless high dragon will let you loot her Fire Gland, which, in turn, can be crafted by a local enchanter into an amulet named Urzara's Tooth. This used to unlock a codex entry, which claimed that Urzara's Tooth is a 200-year-old relic of a dragon-worshiping cult, but the codex entry has since been patched out."