The whole Fairy Tail guild would be affected. Natsu is a central figure in the guild. His presence as a baby would change the dynamic. People would be more cautious around him because he's now vulnerable, and they'd all be focused on finding a way to turn him back to normal.
Lucy would be very affected. She's one of Natsu's closest friends. She'd have to take on a lot of responsibility for taking care of baby Natsu, which would disrupt her normal life of doing quests and writing her novel.
I think Naruto would be one of the most affected. Since he and Hinata have a special connection, having her turn into a baby would completely change their dynamic. He'd have to step up and be responsible in a new way.
His powers would likely be severely limited. The Sharingan, which requires a certain level of mental focus and chakra control, would probably not work as effectively. As a baby, Sasuke's chakra system is not fully developed, so he might not be able to access the full potential of his powers. He might only be able to use the Sharingan in short bursts, like when he's really scared or in immediate danger.
It's possible that his powers would be more erratic. As a baby, he doesn't have the control he has as an adult. So, his ice - making abilities might go off randomly. For example, he could accidentally freeze the water in a nearby pond just by being near it while having a little tantrum. But as he grows and learns about his powers again, he would start to gain more control over them.
His powers might be affected in different ways. For example, his web - shooting ability could be less precise. Since he's a baby, he doesn't have the same muscle control and coordination as his adult self. So, the webs might come out in a more random direction.
France would be a likely candidate. France has always had a sort of motherly - like affection for Canada. He would probably be very eager to take care of baby Canada, dressing him up in cute clothes and feeding him French cuisine, like crepes.
Japan could also be one to take care of baby Italy. Japan is known for being meticulous and organized. He might be able to handle the practical aspects of taking care of a baby like preparing proper baby food and creating a clean and safe environment for baby Italy.
One possible plot could be that the magic in the world goes haywire. Natsu is caught in a spell that turns him into a baby. His friends in Fairy Tail are shocked at first. Lucy might take on the role of a caretaker, trying to figure out how to reverse the spell while also dealing with a baby Natsu's unpredictable behavior like randomly using small bursts of fire magic that are more like cute little puffs now.
Lucy might also be an ally. She has her celestial spirits that could be a great help. For example, some of the spirits like Leo could be very powerful in combat against the dragons. Also, Erza would be a great addition. With her various armors and combat skills, she could hold off a large number of dragons while Natsu focuses on the more powerful ones among the 10000.
His friends would probably take care of him. Midoriya would be very eager to help, using his kind-hearted nature. He would make sure Todoroki is fed and comfortable.
His friends would be the most affected. For instance, Shikamaru, who is used to Naruto's normal self, would have to adjust to this new and somewhat spooky Naruto. He might have to come up with new strategies to deal with Naruto's new abilities and behavior.