Chinese street dogs, my parents and my kids… AIBU

[mamato3NW]

Around 2.5 years ago, my parents got a street dog from China through this woman who runs a rescue centre who they met through Facebook - it was shipped over to UK and has generally been an OK pet, it’s a terrier breed, bit yappy and not the friendliest thing but generally all bark no bite, we’ll call this dog A.
18 months ago they decided to get dog B, somehow convinced by this woman that this next dog was a relation of the one they have got.
It arrived in UK and it was immediately obvious it’s traumatised, scared of his own shadow, he’s been hunted by humans on the street. The dog then lived under their dining room table for 12 months shaking.
They got a dog trainer and now they can get it on a lead and it walks, and is becoming slightly more confident, but very wary around humans, loud noises etc - fine in a quiet house left alone.

My parents have always helped me out with my kids, DD-3, DS-5, DS2-14, generally it’s been fine no incident with the dog, but recently we all went over for a meal, and my daughter ran across the room past dog 2, he jumped up and bite her leg. Fortunately, he only got her thigh he left marks and a slight bit of blood, but no major damage. Medically she’s fine.
My problem is now is I don’t want to have my children at my parents house until the dog is ‘normal’, my parents think I’m being completely unreasonable, they say it only happened one time and doesn’t usually happen, and it’s causing me major problems with Childcare.
I’ve said, I’ll put the children into after-school club, etc, but now they’re saying I’m taking their grandchildren away from them. I genuinely don’t know what to do.
My husband and all his family are saying the children shouldn’t go around to the house because of the dog.
I’ve said to my mum, she can have the children at my house, but I work from home, and now when she’s at my house, she’s letting them come and disturb me when I’m at work (in an office on a top floor) and then saying well if they could come to my house, this wouldn’t be a problem.
The whole situation is affecting our relationship with my parents, my husband, it’s impacting my work, and leaving me stressed.
what do I do? AIBU?

It’s bitten and drew blood once already, it needs putting down and not continually exposed to children. I’d keep mine well clear until the dog is gone.

You're not being unreasonable here.

The people screaming to have the dog put down, yeah - this is a human fuck up and mishandling.

No kids in the same room as the dog and as it appears your DPs can't exercise common sense nor understand anything about dog behaviour or body language, I'd have a 'no kids at their house' rule.

The poor dog needs time, space, proper behaviour consultant intervention or rehoming to a kid free home that has a clue, because this is not 'rescued', its just different brand of neglect and terror.

IF a home can't be found (and this should be down to the rescue they got the dog from, not them) then euthanasia may be an appropriate option.