Is there anyone you can ask to take her for a good run, or might she go to a friend with dogs' house or "doggie day care" a few days a week to help wear her out?

The baby is likely crying because you tense up when the dog approaches, so try to school yourself not to do so.

There may be a teenager nearby who would love a little money for taking her for a good long walk/run - any kids you know, or kids others might now - available?