Our Bichon also preferred his crate. This was taken about a year before he passed.
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When we had to board him, he much preferred a smaller room and would cry if they tried to be nice and give him a kennel for a large dog. He wanted to be in his "room" every night and for the longest time he would cry if we left the door open. He finally agreed to leaving the door open, then after the kids left home he realized that there was no one on his floor so sometimes he would sleep on his cushions in the living room. We miss our fur-baby but am enjoying more spur of the moment time. Maybe latter we might get another but it would not be fair to baby right not as we both work full time.