I don't specifically keep track of whether or not you've seen the dogs !! I thought I was keeping it vague but maybe not: can you give me a specific example?
I just got this too. If you go with him and meet the dogs, you're specifically introduced to Fern. Then if Crave comes and gets you the next morning, you ask him "Who's Fern?" and he explains she is his dog... and he goes on to ask if you've never seen a dog, even though he showed you them all the previous day.
Oh I see what I did. I try to check if you were with Crave the night before but evidently it's not reading something right. That's gunna go in the pile for the next bulk bug fix update, thanks! Until then please imagine that you are merely giving Crave the opportunity to introduce you to his dog again, his favourite hobby.