When I first added the dog, he promptly left the kids bedroom and curled up on the bed in the masterbedroom (very realistic), then sadly, he seemed to become stuck between the nightstand and the closet. I couldn't be sure if that was a glitch or not, considering some real life dogs I've known.
Now he follows around whomever he can catch, mainly the dad. Although last night he ended up sitting in the mom's lap. Then she changed positions and they exhibited that famous VV/VF ability to occupy the same space at the same time.