@Colin238 If this was an Instant Book reservation, you can cancel it penalty-free stating you are uncomfortable with the booking.
But if you are going to allow pets, it isn't going to work out for you to state the dog isn't allowed on the furniture or in the bedrooms. Guests whose dogs are used to that will not be able to, nor comply with those rules. If you allow pets, you should resign yourself to that, or stop allowing pets.
While children can be told and understand that "Yes, you are allowed to do that at home, but not in other people's houses", a dog doesn't understand that- if they lie on the sofa and sleep in the owner's bed at home, they will do that at your place, too. No dog owner who normally lets their dog sleep in bed is going to prevent them from doing that at your place, I guarantee you.
Furthermore, every dog owner will tell you their dog is well-behaved.
If you choose to continue to be pet-friendly, there are a few things you can do to mitigate the dog hair issue. When guests tell you they are bringing their dog, you prepare for their visit by leaving old sheets and towels for them to cover surfaces the dog lies on and be very clear with them about using them. You can remove throw rugs. Maybe even provide a dog bed. Things like that. And you could provide a cheap shop-vac to dog owners and ask that they vacuum up the majority of the hair.
I am a dog owner myself, whose dog happens to be a heavy shedder. But I don't believe in dogs on furniture or beds, and no dog of mine has ever been allowed to do that. If a dog is trained that way, they don't even have any desire to do so. They know their place is on the floor.
The only time my dog wants to be up on the couch is during rainstorms with thunder and lightning, which terrifies her. She is trying to get off the floor because dogs can sense the vibrations through the floor, so she feels vulnerable. I do allow her to do that, as she is in primal fear mode, trembling and panting.
But as soon as the storm has passed, she jumps off the couch, because it isn't part of her normal, acceptable places to lie and feels alien to her.