Socialization needs to began at an early age. They need to be exposed to all kinds of dogs and people all the time. I am sorry your Diva was so upset she vomited .It was too much for her to be around a puppy who would not leave her alone. Even though it was her offspring. there was no connection.
Work with Diva on socialization, and you can distract her by using treats. It is going to take time, and consistency. Hopefully she will get accustomed to other dogs.
My Suzi is timid around other dogs. She does sniff a dog, and then is done. I also need to work with her.