They can not tell you or make you put your dog down. That is a horrible suggestion by them.

Have you got an old jumper or T-shirt you can wear, get all sweaty in and then live to her. If she is getting old, she might use it for comfort. Sometimes even a big stuffed toy can help for older dogs. Places like Vinnies might have some.

From what you have said your dog has done what any normal dog does. It will be interesting to see what you get on camera.

Next time I speak to DH I will ask him for suggestions. He is a ranger for our council so deals with this a lot and I can tell you that majority of complaints have no ground. Don't worry to much about it if they do complain to council. Chances are they will say there was a complaint but without proof they can't do anything.