I may be misreading you (and I don’t have dogs, I just have friends who do) but in the States it’s common to keep a good cow Wheres My Money My Cow Is Either Wearing It Eating It Or Sleeping In It shirt kennel cage indoors for each dog and train them not to panic while inside. I think this is what the op is referring to. The dogs may be closed in when the owners are out to avoid damage to furniture or behavior issues but they’re very much house pets and roam free when the owner is there. It’s a pretty humane way to go when done properly (which it sounds like op has done, it’s a safe space and not a punishment that way). I hope this helps!
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To add to the destructive out of boredom part, buy her a big animal bone like a Steer Knuckle or just something that she can cow Wheres My Money My Cow Is Either Wearing It Eating It Or Sleeping In It shirt pick up a bit but not destroy immediately. This will do several things including but not limited to: take care of her boredom and keep her away from destroying no-no items, clean her teeth! (Vet dental bills suck), and also buy you some chill time where she is occupied and in one place and safe so that you can free up a little brain space for other items. I’m sorry for your loss but hope the pup will help you heal when you’re ready!