Wow, thank goodness you insisted on going inside!!! What kind of operation is she running? Should have some interesting mixes with all those breeds and sizes. She probably did not even know what dogs she bred your puppy from.
My are the red flags flying here. It shows that unless you know the breeder very well it is very scary to buy a pup unseen in its environment. Yes, you should report her and I pray she gets cited and closed down. She is obviously a BYB with no rules for correct breeding and is just in it for the $$$ s.
You sure dodged this bullet, but you should be commended for insisting you see the home. Best of luck getting your perfect pup
By the way, Yorkiemom is right , who knows what was lurking in her home. I bet you felt like taking a shower after that home and bathroom visit.