The fact that neither of cocos parents have an underbite and she was the only one in the litter that had one leads me to believe it was just a "freak accident".
The underbite probably came from the "grandparents". I would not breed this dog either. She could pass it on to the litter. Yes, it probably doesn't look bad and some may think it is cute. But, if eating and drinking is a problem, that is heartbreaking. You pass the puppies on to new owners that don't realize there will be a problem and they have to find out later and deal with it. Every time I hear of people having to deal with problems, taking their pets to the vet and putting out all this money for something that could have been prevented by the breeder, it just burns my a**. I've been there.