I like Bd7, it's like a normal sicilian except white's attack is slower and blunted. A kingside fianchetto seems logical since you don't have to reckon with Bc4/b3 as in the Yugoslav attack.
Dynamic Antidote to 3.Bb5 Sicilian - Moscow Variation
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Okay. For one thing, 3...Nd7 is not considered dubious at all. In fact it is the best scoring move. After either 3...Nc6 or 3...Nd7, black also may face a white setup involving c3-d4 in similar fashion to a Ruy Lopez. I play this stuff for white, and frankly I don't think it leads to much if any advantage with best play in any of the three lines. The best move is probably 3...Bd7 IMO, but it depends on your style. It is still very much a game, even if black finds equality in a lot of lines.
I play mostly Nd7 here as recommanded by chessexplained. It is the solid and fighting move in the position, so I rarely do Bd7 as its just okay.
In your line after Qxd4, just e5! and we have a very good sicilian setup. The position is basically equal as while white has a development lead, black is very solid and there are not many threats. Black can catch up in development quite comfortably and get in a good setup.
3...Bd7 is consider the mainline, and the equalizer.
3...Nc6 is considered risky, due to the ruined pawn strucutre that results after 4.Bxc6+. Note that this position may also result after 1.e4 c5 2.Nf3 Nc6 3.Bb5 (Rossolimo) d6.
3...Nd7 is considered dubious, especially after 4.d4 cxd4 5.Qxd4. Black falls behind considerably in development.
I am curious for forumers' input on which line is the objectively best line, and which one is the most dynamic. Also, which line do you play as black (if you do play the Dragon) and why?