@Kembe, nice post! We've gone to solid food chopped up in a food processor, but we're grinding it a bit more course as we go. So far, no puppies are choking, but good to know!
Don't believe that is sleepwalking or dreams - at first it was cute, but as it went on it became apparent that dog is having some sort of seizure - I'd take the dog and the video to your vet.