@PugInTheHouse sorry to hear about your ruff night (pun intended)
Sparklepup was similar that we never did crate training, he just went in it from day 1 and then fairly early on we realised we needed to put him in for forced naps and he was always fine about going in. But the last week or so he has looked at us with sad puppy eyes whenever we tried to put him in so we've given him a chance to settle on his own and to our surprise he's been doing it. Think I've already said on a previous post so sorry if I'm repeating myself but he's been having all his daytime naps out of the crate and just going in from 10pm-6am.
What I've noticed is how much he moves about. He does like us all to be together and if we're in different rooms hell occasionally go from room to room to check in. He'll lay on the couch, then go lie down under the table, then curl up in hallway.
It's a bit of a chicken/egg situation but he is also much more chilled. Whether he's settling outside the crate better because he's chilled out or he's chilled out because he's getting better rest because he can see what we're all doing and can move about, have a stretch, get comfy etc.
Anyway the last few nights he hasn't wanted to go in overnight so we are thinking of leaving him out all night. We don't have the cat issue but is there maybe a room he could have to himself or like you said you could pen off an area of your room maybe.
Could be the age as they are both 6 months this weekend aren't they? In fact is it pugpup who is 6 months today?