This is an interesting dream, because although you describe it as "reoccurring", it doesn't play out as most repeating dreams generally do (which is typically quite unsavory). On the contrary, you appear to be resolving the anxiety trigger that first ignites this nightmare near the conclusion of your dreaming-state, but for whatever reason, you may still be harboring the original anxiety once you awaken, even though you are facing your fear directly in the dream itself, which is fantastic. It all makes me believe that this may be one of those situations where your brain needs to revisit this sort of imagery a few times during your life before it can come to terms with the realizations you experience in the dream you described.
In other words, your subconscious mind (and probably your conscious mind) is currently dealing with the concepts of death and mortality (and probably will for some time, which is normal for any human being), and simply might need to revisit these morbid ideas occasionally in order to better learn how to cope with the concept. It's a common "right of passage" dream-type for many individuals, much like the dreams adolescents have about going to school naked, or having all their teeth fall out.
At it's very core, this is a dream based on the fear of the unknown, primarily, the primal human fear of death. Your dream experiments with many aspects of mortality, including the fear of personal death, the fear of watching strangers die, and the fear of watching a loved one die. The werewolf is simply a symbol of the unknown bringer of one's mortality, and may even be representative of a current waking situation that may be threatening the health of you or those you care for, like an illness. But it doesn't seem to be a typical display of that particular anxiety.
It is extremely promising that you are facing this fear head on in your dream at the end. In fact, you sit this creature down and start asking in questions! YOU gained control of the situation, and I believe that you will be able to find resolution with these frightening ideas with an eventual sense of understanding and peace.
I do wish you the very best, and thank you for sharing your dream!