A durag is too tight. For any stage of the locking process, you want something loose on your head, if anything at all. It's best to just leave your locks hanging free. That said. You never want to wear something on your head when your hair still wet. That causes mold. covering your head or tying them up (if they were long enough), restricts air flow. They wont dry out as quickly as they need to. Wet locks end up getting that wet dog smell which is a first sign of mold or mildew.
The towel method, I assume, is rubbing your head with a towel? That, unfortunately is a myth. It just creates a general knottyness. You will then have to spend a long time separating the sections and untangling them. It also only works once. The next time you do it, you end up rubbing out the tangles you made the first time. Locks happen all on their own. There's no need to rub your head with a towel, or sleep with a wool pillow case. Or wear a tam. People brush their hair to get rid of knots. If you just didn't brush, those same knots would form dreadlocks.