I have a similar situation with granddaughters and Buford. I explained that if Sheba or Sentry snarled up at Buford, for them not to be afraid. I explained that Sentry and Sheba were teaching Buford dog manners. While it may look and sound like a horrible fight, there likely wouldn’t be any blood drawn. I told them to back away, not try to stop it or get in the way.
Sure enough, Sentry gave Buford a thrashing. Jealousy? Probably. Girls backed out of the way, of course I went to the dogfight to make sure they were ok. Buford was chastised….. until next time. LOL He has to learn dog manners and respect.
Difference is, I was expecting it and warned the girls. They knew what to expect and backed off a safe distance. I did call Sentry off and petted him. Buford was whimpering and ran in the sheep pen looking for a safe place away from Sentry. I went and petted him. Then the girls went back to loving on the dogs. Peace resumed.
I don’t think you were wrong, just unprepared. This is a good time to educate your kids in dog pack order. An Alpha dog can’t spank another dog, make him stand in a corner, take away a toy, like parents punishing their children. Dogs have growls, snarls and teeth. That is their language. Hera was reprimanding Leo and it was not an attack to kill.
Teach your kids to speak dog, understand dog language and know when to get out of the way. Hera is a treasure. If she was continuously attacking Leo, I’d put a stop to that. If she was aggressive towards him, I’d call her down. Yes, she needs to learn some boundaries with your kids, but you also have to let her correct Leo. Educate your children in dog language to give them better understanding. If a real fight was to break out, they would need to get out of the way and let you handle it.
That’s my take on it.