my cat does not like to be inside... he prefers outside living and really doesnt like other cats.... I think as long as he has shelter from the weather and food he will be happy there. You can eventually make him more comfortable around humans, it just takes time that is all.
it is hard to make the pups not chase the cats, but eventually, over time they will probably get used to each other, I know mine did and my cat was a stray who just showed up just like this one. Now they sleep together and love one another.
Good Luck!
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