They have long since found out that people will believe absolutely anything about the DPRK. People think that everyone pushes trains to work (instead of walking) and have state mandated haircuts.
Even if you post factual evidence to the contrary, the thing that gets labelled as propaganda is the refutation. Obviously people can’t possibly all be housed, it is far more like that 50% of the population of DPRK are paid actors that just really care what people from the US think!
If everyone were starving, dogs wouldn’t even be the best animal to raise.
If you want efficienct conversion of feed to meat, you are going to get way more from poultry or fish. Insects would be probably the best, they convert extremely efficiently. Especially if you consider that they can process things that we cannot necessarily.
If anything, they should be saying that people are having to rely on insect farms. There is nothing wrong with that, I like most insects I have eaten, but you would probably trigger roughly the same revulsion the propaganda is designed to elicit while being far more believeable.