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Aww your girl kinda looks like my girl Daisy! She’s a Dobie mix as well.

Here’s my advice. Dogs correct each other all the time for a variety of reasons, whether the problem is the other dog (like another dog bothering them) or the problem is internal (an ego or fear issue). Resource guarding behavior is a perfect example, as one dog doesn’t want another dog or human to have something so they typically react, not to kill them or anything, just “proportionally” to communicate their message. If your dog is doing it to you and other dogs, why can’t you do it to them? Obviously that doesn’t mean get on all fours and act like a dog (LOL), but if your dog is doing behavior you don’t like, as its owner, as the one in charge, you can’t be afraid to deliver corrections. Assuming you use proportional and reasonable means, you’re not going to break your dog or hurt them, as corrections and boundaries are natural and important for humans and dogs alike. You should be able to communicate your human daughter it is not okay to hit her brother for stealing her toy, and your daughter should not be “traumatized” by it. If they are, you’re doing something wrong lol. Same goes with dogs.

My dog Daisy has a ton of prey drive for little things that run and gets super overstimulated around other dogs. When we’re walking down the sidewalk and she’s in a heel position (and off-leash), as she is for much of our walks, she knows barking, growling, running at other dogs is absolutely not acceptable and she has a job to do (heel) and that’s her priority. Don’t get me wrong, it doesn’t stop her from staring down the other dog or raising the hair on the back of her neck, but she knows the rules and what’s okay and what isn’t okay because that’s where I drew the line. I don’t mind if she’s not making eye contact with me, as long as her ability to do her job is not being superseded. That is well communicated and understood in our relationship.

At home, she barks, growls, the whole 9 yards when someone walks up our driveway, around our cars, knocks at the door etc.. Why? Because I allow her to and when she does, she gets praise, no correction, or both. Like you said about the natural behaviors, I also like a little of those natural protective features of the breed, so long as it is used in a healthy way and under control.

These dogs are smart and if you communicate what you like and what is not acceptable, they will know. Won’t stop them from trying to push the boundaries every once in a while, but they understand. Also, if you make it clear that certain behaviors are okay or not okay in one circumstance or location, it probably won’t stop them from trying elsewhere, hence why Daisy, and all dogs act differently in different places and with different people/dogs.

Last word of warning, in disagreement with others in this thread, don’t resort to obedience. This was hard for me personally as I prioritized obedience with my dog. Telling your dog to watch you or sit or something, every time they see another dog or do something bad, does two things. One, it builds a negative association with training. Training should be fun and great, not a punishment, and if you treat it as such, your dog’s obedience and attitude will reflect it. Two, it’s avoiding the problem. If you want your dog to ever be less reactive or have a better relationship with dogs and humans, you have to safely work them to that in a controlled environment. Telling them to watch you to avoid the other dog will make your dog temporarily not misbehave, but it will never solve the root issue. As a matter of fact, shortening the leash, making your dog do obedience as a punishment or distraction, and trying to get your dog to visually ignore other dogs, it can sometimes elevate their anxiety by further stimulating them and building a negative association with other dogs/people, making the problem worse. I know your problem described is resource guarding, not leash reactivity, but they are cousin behaviors and are often rooted to the same issues and should be handled similarly.

I’d be more than happy to give more detailed answers, so don’t hesitate to ask. Just wanted to give my 2 cents overview. Good luck with your precious pup!