The answer to this question is much more complex.
There are many studies about dogs and cuddles.
Your dog is a social animal, he wants to feel accepted. When you cuddle with him, it makes your dog feel like a valued member of the family and your dog will be happier.
When a dog cuddles with you, it is displaying its devotion to you. These studies have shown that your dog thrives on love and affection and that the cuddling is a natural expression for this social animal.
Recent studies tell us that a large percent of dogs showed heightened signs of stress and anxiety when hugged. Dogs hug us back for one very sweet and simple reason: because we love it and because they love us.
Apparently cuddles makes them feel claustrophobic. Dogs instinct when scared is to run. By directly limiting their ability to do so with a hug raises their stress and anxiety.
It’s important to know that every dog is individual and different with his or her own distinct personality.