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I know some dogs will "fake pee" because they want to stay outside longer. Maybe she could be doing that? Is there anything out of the ordinary besides the squatting but not peeing going on? Chewing/licking herself a lot? If she's drinking fine, I'd say she's fine. Was she spayed recently? She could have a reaction to sutures used during spaying. That's what happened to my pup and she was squatting but nothing would come out, but she was drinking and eating fine and all.

If Pedigree agrees with your dog, I'd say keep her on it as long as her coat stays nice and healthy and such. IMO, it's up to the dog's body to decide what is a good food for them. Not us (although, to some extent..).

Bella is a CUTIE!!