The first thing that comes to mind is that your daughter is getting the attention she's seeking. If kids can't get positive attention, they will settle for negative attention. After all, attention is attention. Perhaps your mother can put the puppy away in a room or crate a designated time a day and give her wholehearted attention to her granddaughter. Ensure your daughter knows beforehand that this is her special time and hers alone and that after that she'll need to share the rest of her day being around the dog until the next day's special time. Just a thought.