She's doing this because she knows the trouble it is causing. Even bad attention is better than none. If everyone can let it go, she won't get any. Move on. Talk with your granddaughter to let her know you will make her another. Let her help pick out the fabrics to make it truly hers. Even let her help choose a pattern, or with cutting and sewing. This will make a nice memory for you both. Put a label on the back clearly marked as hers. Enjoy the sewing and creating.