Currently, the passive effect of Wolf Medallion detects all kinds of mobs that are able to attack, including wolf.
It may be a good idea to make it not detect the tamed wolf (in other words, the "dog"). If possible, expanding the idea to all the "allies", like Suggeon and the Deep Ones summoned by the wearer, etc. (the Shoggoth may still be detected, for it is not calm and can be very dangerous)