We made sure that in the months leading up to baby being born, that the dogs were put into a routine that wouldn't be unusual to them once baby arrived. So if they came inside, they were to sit on their indoor mat, we tried to get them used to walking with the pram. Their routine didn't change hugely because they were already outside all day while we were at work, something that would continue once baby was born.
When we had DD, DH came home each day I was in hospital and got them to sniff the used baby clothes. They fretted while I was away (5 days in total). When we came home, we brought them out to the car and they watched us bring DD out. We let them have a sniff, but after that, they were happier in the backyard. If we brought them in, they wanted to be out. Three years on, and this is still the case with one of the dogs. Neither of them have ever shown aggression, get along fine with each other and are okay with other dogs (one is overly enthused, and the other couldn't care less). But I have never let DD near them by herself. Too much can go wrong in a split second, and it's just not worth it. Fact is I trust my dogs, but if DD was to pull a tail or an ear, I have no way of 100% knowing how they will react. I'm hoping I read you wrong when you wrote "I basically always have to watch him with kids and dogs until I KNOW they will be ok (like, after several visits)" but it gave me shivers.
We tried not to exclude our dogs from our life but things do change. Having a baby that didn't sleep too well, and had unforseen medical issues meant that the dogs really did take a back seat for quite some time. But we found a balance again. They come camping with us, DD likes to talk to them, pat them and throw the ball for them and I don't think they'll bat an eyelid when we have this baby.
There are pamphlets you can get about introducing dogs to a new baby - we got ours from the hospital, or maybe talk to your vet for other ideas about how to prepare him. Good luck!
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