I was in the Prison Guardhouse and used Simple Bash on a guard dog, it dodged successfully and moved to another threatened square and took damage and push effect (in to a Hot Spot terrain effect that subsequently killed it, no less). It would make sense to either have the enemies move out of range (AI bug) or have dodge actually negate the attack as a block would.
Dodge allows for movement which can be used to avoid or get into a better position. I wouldn't want dodge to negate the attack and allow better positioning for the defender (although there are some cards that do that already). As for the dog's AI, it's likely set up to try to get behind you whenever possible and they are not so cowardly to back off even when they might otherwise. I think it's right in line with what I would expect from the game AI as well as the representation of an aggressive attack dog.