Phoebe sounds like a lovely dog who has great bite inhibition, my son has stepped on Macks paw, and he swung round saw who it was, and just settled back down, sounds like Phoebe did the same. Nothing wrong in that.

I am sure Phoebe will be fine in kennels too, she has the other dogs for company.It is difficult when it's family but I am sure this will be the best for Phoebe. Enjoy your Xmas break xx

That is the natural reaction of any animal. no matter how placid they arre. Sorry but getting rid of the dog is the easy way out.
ATD x