It does sound a lot like mange/mites. Did your vet scrape the skin and test for mange? Lice? I had a little dog years ago with mange, and the treatments alone about killed her as it is a stong pesticide dip they have to use to treat it to kill the mites. It was not a fun process, and I had to watch her go through three treatments of that stuff. I know that dog lice is specific to dogs, but I am not so sure about mange. It seems like my vet told me humans could get mange from their dog, but I could be wrong on that. Something to check in to. If your vet does not know what this is maybe you should go to a different vet. Mange should be fairly easy to diagnose.
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