Your dog may not be accustomed to being hugged tightly, grabbed, or kissed in the face. Allow your child to wake up a sleeping dog abruptly. This may frighten the dog. Force your dog to interact with children. Let him decide when it is okay.
Prevention is the best cure.
If he begins to dig, reprimand him with your voice and redirect him to something that is acceptable, such as a toy. Remember that certain breeds dig more than others. Play games with him so he is not bored. This will help to prevent digging. Provide adequate shelter.