I figured out why I couldn't see the dogs at the beginning! My screen boundaries were a bit off, so when godot opened it cliped a little bit of the left side. I just didn't realize it until I started messing with the game window :) Also, personally I think the sprites are a pretty good size right now. I'm afraid that making them too big would overwhelm the player at the beginning.
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Awesome, glad to hear it. After playing several of the other sheep herding games people made, we've pretty much come to the same conclusion that the sprites are just the right size. It makes it so the scale feels right and herding 80 sheep is doable (as opposed to a bunch of the other games where you get like one dog and maybe 5-10 sheep).
And thanks for checking on the screen thing! Much appreciated :-)