How old is he? He might be going through a fear stage.
Some dogs are naturally shy. I would break the individual behaviors out and address them separately.
For instance, bending over to pick him up: this is a threatening position for dogs. Many dogs get used to it, but they have overcome their first instinct. Try approaching him in a (to him) less threatening manner. You can also desensitize him to it by bending over him and throwing him a treat.
Similarly, with dogs, praise him a lot when approaching dogs, and reward him if he acts even a little bit more brave. Be careful when treating him around other dogs, since other dogs may feel that they deserve treats too!
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