If you want to know how to find the right dog, STOP READING. This is about a later stage of the quest.
If others, like I had, have a problem finding out how to scare off the guy that is afraid of wild animals, here’s how to do it:
Henry barks if you press AND hold the X-key. ALSO, it’s not enough to just be near the camp, in the quest area. You have to be near enough to trigger the ”private area” warning. If not, Henry will just whistle his horse.
Alternative solution: When the ”fire guy” has ran off and Felix walks up to check the grave, knock out the ”beast guy” and carry him away. When he wakes up he will count as scared off, and the charlatan will enter the scene.
