Sorry...one more thing ...please take my post for what it was - I am NOT a trainer so when I said possibly relaxing a bit with the yorkies - remember - that came from someone who puts their emotional being first - AND training followed.....
When I got my 2nd yorkie - my biggest concern was keeping my 1st girl from being sad or stressed. So that's why I said what I said. Hearing about his ears being down and him acting depressed sounded so sad... that IF I were you - I'd try to make things a bit more fun for him - and include the puppy if you can.
There are NO BAD DOGS !! Some can take longer to train and have set backs - but they really can't help it. He sounds like his little nose is out of joint
and I would shower attention on him to make him feel better - but as I said - this is only MY opinion. GOOD LUCK !