I'm glad you took Caro's advice. I've seen this response to new babies many times in the past with various breeds of dogs. The common threads were, no exposure to infants prior to new arrival and young dogs. You might find that this dog becomes protective of the baby in time - that will be your next frustration but you can work through it in your sleep deprived place. I have my fingers crossed for you that the baby starts sleeping through the night earlier, rather than later and that your fur baby gets comfortable with the "naked" puppy soon.