Holes on the ground around the foundation can cause groundwater entry
Many times I have inspected homes with groundwater entry into the crawlspace or basement that contained holes on the outside of the home. Sometimes the grade is bad as well. This would seem to be something that would not require a professional to ascertain, but many times it does. The homeowner at times just takes it for granted that the good natured household pet, usually a hole digging dog, is just having fun, and it is not a problem.
I have seen home drainage problems that were as easy to solve as filling large holes under decks, that were created to cool a dog withering in the summer heat. When it rains, these holes fill up with groundwater, and perk out on the foundation wall.
Moles, gophers, and other critters can be causing or contributing to the groundwater problem by their burrowing as well. Tunneling by these critters can do lots of damage to a foundation wall, and open pathways for groundwater to run into the basement or crawlspace.
If puppy continues to dig, and this is his dog run placed on the foundation, put some metal hardware cloth down about 6 feet wide in the area he is digging, cover it with a soft puppy friendly padding, like dirt, straw, cedar toe or wood chips, or fence him into a location not located on the foundation wall where he can dig to his hearts content.
I like shredded cedar bark, which is called cedar toe, because it is very soft, comes in a bale, smells great, and repels fleas. Replace it approximately every few months, depending on the dogs waste disposal habits. Naturally replace it more often if the dog is confined, and does not get out much to do his duty.