Simulating urban airflow and pollutant dispersion requires resolving multiscale physical processes, from large-scale meteorological forcing to highly localized building-induced turbulence. To accurately capture these multiscale urban flow fields, this study introduces FluidUrban v1.0, an advanced modelling system built upon the Fluidity solver and centred on a three-dimensional Dynamic Adaptive Mesh Optimization (DAMO) framework. By dynamically adapting mesh resolution in response to the evolution of flow physics and scalar gradients, DAMO concentrates computational resources on critical high-gradient regions such as building wakes, shear layers and scalar sharp plume. The model's performance is systematically evaluated against high-fidelity “WOTAN” wind-tunnel experimental data under varying surface roughness conditions and inflow directions. The results demonstrate that the FluidUrban with DAMO framework consistently outperforms traditional non-uniform fixed meshes (FIXM) by accurately capturing complex urban wind fields and pollutant concentration. For normalized wind speed, FluidUrban with DAMO achieved a Mean Absolute Error (MAE) of 0.187, representing a notable reduction from the 0.214 simulated by FIXM. In terms of wind direction, the model reduced the MAE by up to 38.4 % in medium roughness and 36.1 % in high roughness conditions, respectively, during realistic oblique inflow scenarios. Furthermore, for pollutant dispersion, the model effectively suppresses numerical diffusion and maintained sharply plume gradients, achieving an 89 % compliance rate with established atmospheric model evaluation standards (FB, NMSE, and MG), compared to only 50 % for FIXM. While DAMO introduces runtime cost for mesh regeneration, this cost is strategically offset by the optimization of the accuracy-efficiency balance. Following the systematic evaluation, FluidUrban v1.0 was applied to a realistic urban scenario, demonstrating its robust capability to resolve the complex flow fields and spatial heterogeneity within real urban morphologies. Thus, FluidUrban v1.0 demonstrates to be a robust aerodynamic tool for resolving the transient, small-scale flow structures critical to pollutant transport, establishing a solid foundation for the future integration of comprehensive urban physical components, including radiation, vegetation, and full energy-balance physics.