Difficult situation!
However, what got my attention was that your God Daughter loves it!
I was prepared to read that she had no interest in the quilt.
Despite the dog issues, I'd take that as a huge win!
Sadly, once we gift a quilt we really have no control.
And in this case, I believe you were paid the $.
As someone else had suggested ... if her husband wanted a wall hanging, then he should have presented it with a hanging rod and installed it right away.
I'd say ... Take the God Daughter win of her loving it ... and politely say no, if you are asked to make another.
P.S. ... loved the quilt when you showed it before ... and all the more, seeing it again!