Personally, I don't like a spray bottle. IMO dogs are smart enough to know when you have the bottle in hand. IMO your trainer is asking your dog to act out only so she can spray him or make a correction. Even if the other dog is the one to first act, your dog gets sprayed. That doesn't seem right to me.
It kind of sounds to me like you might want to consider your actions to Cody's behavior. Dogs absolutely respond to your own body language. Maybe without really knowing it you are asking him to protect you, as you say, you allow him to be ahead of, or in front of you. Maybe he feels the need to protect you rather than be dog aggressive. While walking, on a leash, I never allow my dogs to meet nose to nose with another. Ever. I also expect their attention to always be on me. I can tell when my dogs see something. A rabbit, bird, or even another dog approaching and I know by their behavior or body language when they are not focused on me. I don't have to see their face. I give them a come back to me focus command, "hey" and if they don't obey, I give them a nudge on their harness to say, pay attention to me, and we keep walking uninterrupted. I never have any issues with other dogs.
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