Yes, the dog has a few levers including a "boredom" counter that will trigger it to do things on its own (like roam around, eat something, chase something (eg a rabbit) if there's one around etc). All connected with its current state (Eg hungry = will probably prioritize eating but not guaranteed). Other things are mapped to game events. Deterministic in nature but its underlying values can evolve over time (both its default "homeostasis value" but also the curve of which it increases). You can think of it as letting an llm design a behavior graph, and then playing that behavior graph until it changes again.
Talking to it alleviates pressure so that mechanism doesn't fire much, but in the void-mode video on the website, at the very end, it chooses to chase down an elk on its own much to my surprise.
After play testing it I had to tone it down quite a bit as it caused continuity issues...
In one scenario the dog was hungry so he went and ate something that was owned (counts as a crime attributed to the player) so we ended up in jail. Being transported to jail fired a new location event and a switch from "exterior->interior" which the dog responded to by having the llm author something along the lines of "It's nice to be finally indoors, it was getting cold outside". Which made for a very funny moment but a frustrating gaming experience.