She should not breed that poor puppy back, that is for sure
I know there are a lot of people making money on the mixed designer breeds and some of them are very cute dogs, but people get careless with the bloodlines and cause more health issues. I know people here with those problems. Large vet bills are no joke.
I know you are happy about not having any fleas. It will be too cold for them to pop up there in the winter and I hope if some are around they freeze to death, for your peace of mind and families sake. They are a pain and the bites itch like crazy. Here in Texas we get them real bad.