Is it true that for every dual quaternion $Q$ I can find it's inverse such that $QQ^{-1} = 1?$ Using the usual definition $Q^{-1}=\frac{Q^{*}}{||Q||^2}$ doesn't work for me, since the dual part doesn't generally cancel out, and also $QQ^{-1}Q {\neq} {Q} $
At least, that's what my implementation in code says.
No, the dual quaternions contain zero divisors, one of which is a nonzero element $\epsilon$ with square zero. Such elements cannot have inverses.
It turns out that the units are exactly the $a+\epsilon b$ where $a$ is nonzero. To see this, first notice that $1+\epsilon b$ has the obvious inverse $1-\epsilon b$. Suppose now $a\neq0$. Then $1+\epsilon ba^{-1}$ is a unit, and so is its product with $a$, which is $a+\epsilon b$ . Working through this, it's easy to see why $a^{-1}(1-\epsilon ba^{-1})$ is the inverse of $a+\epsilon b$ .
Trying to establish an inverse with the formula you gave would be circular since you need to establish the inverse of $\|Q\|^2$ before you can divide by it, and that is, generally, just some other dual quaternion.
If the inverse of Q exists, then $QQ^{-1}Q=Q$. The product of the first two things is $1$, and the product of $1$ with Q is Q. If you believe in associativity and multiplicative identity in the dual quaternions, and you know the definition of inverse, it has to hold.