Yow, this world is twisted. They have dogs, but they're humanoid ones and intelligent at that. Despite being a smart species of beastmen they still treat them no different than that of a an actual dog here on Earth.
if they are "weak" ie going into war with human and lost. that's what would happen (90% most likely happens)
it sucks, but that's how it is
at first "goverment" will try to protect the survivor but usually in the background there's some shady dealing and of course real shady merchant
it goes for years and years then eventually it become normal thing to have them as pets (just like the story)
well that's just my "imagination", but not too far from the truth. most likely more complex than that though