I think it's common in fanon for people to mistake Dark Nation for a panther. This might be due to size of guard hounds, the quality of the game graphics, or a combination of both. (You have to admit, it's a pretty odd looking design for a dog creature. And yes, it is confirmed in canon as a dog, concept art calls them guard dog and Zack refers to them as "doggies" in BC. Square probably going for something akin to giant Dobermans or Great Danes with tentacles.) Because a lot of people mistake guard hounds for big cats, you will often to see Dark Nation depicted as a panther rather than a hound.
Licorice, what I'd like to know is to what extent, if any, pre-compilation fanon influenced later canon characterization.