Oh no. There are still things to try. Have you done the scent switch? Give Mowg one of her blankets or towels to let him get used to her scent? I think that helps a lot. I also found that feeding them a treat while they are at or on the blanket helps.

How does she act towards him? It may just take a lot of time for him to feel comfortable. I think that fact that fur isn't flying is a very positive sign.

Of course you know what is best for your household but I hope you can give them more time. If you must rehome her I wish you luck. Are there no rescues in your area? I really hate to see her go to a shelter right when kitten season has started.