Unfortunately with any dog, especially a rescue, you're going to run into problems. Just like if you have children you can't pick in chose if one has asthma, or another has allergies to peanuts. Fortunately for children, you can't simply just "send them back." However, pets aren't that lucky, hence the reason for rescues like the baby girl you have.
Like the other posters on here, it's going to be me this time that sounds like the broken record. You need to get her to a dermatologist asap. If your child was itching, stinky, and down right uncomfortable, you'd hopefully do the same thing.
I'm sure, as the other posters told you, this isn't fair to do to your baby. She's miserable. And that "cudddler" that you wanted, I'm sure you'll have her as long as you take the proactive steps to get her there.
It's obvious that humans have failed this little baby in the past, don't be like the rest. Have enough patience to do right by this little one and get her the medical attention she needs.
It will pay off in the end, and you will have the cuddle baby you want.
