When my youngun was born we had a 7 year old spirited terrier a bit like that and we worried about how it would work,but all was well.The dog was curious at first,but rapidly accepted the baby as part of the "pack"and they became inseparable until the dog died nine years later.They often slept and ate together,and never had a falling out.
Modern day health and safety types would be having kittens at the thought of it.
BTW my lad still sometimes barks when someone rings the doorbell.