Dreams involving transformation, particularly into a lycanthrope (werewolf), often symbolize a struggle with primal instincts, inner conflicts, or a desire for freedom from societal constraints. Your dream suggests that you are grappling with powerful emotions or urges that you may feel are violent or uncontrollable.

The setting of San Francisco, linked to your family's roots, could indicate a connection to your past or unresolved issues related to your heritage. The violent engagements and encounters with law enforcement could symbolize feelings of guilt, fear of judgment, or a struggle with societal rules versus your true nature.

The imagery of blood and physical transformation highlights a sense of raw power but also vulnerability, as you described your chest as thin and hollow. This might represent feelings of inadequacy or a fear of not being able to protect yourself or express your true self fully.

The specific details, like your altered face reflected in the canal water, suggest a deep self-examination. The golden, slitted eyes may represent heightened perception or awareness, indicating that you are becoming more aware of your instincts or primal side. The transformation into a creature of power can also signify a desire to reclaim your strength or assert your identity.

In summary, this dream invites you to explore your inner conflicts—how you perceive your power and aggression, and how these feelings intersect with your identity and background. Reflecting on these themes in your waking life may provide clarity and help you address any underlying issues.