Kobolds in the DungeonVerse

Appearance:

The DungeonVerse Kobold is not a tiny draconic reptiloid, they're small humanoids with canid heads and full body coats of hair. The average kobold is the same height as a halfling or goblin, has the head of a dog, and moderately functional hands. They can use tools, understand spoken languages, read, and other functions assuming they've been taught. They cannot speak very well, only managing a few words as they still have canid mouth and throat structures. They also lack fine motor control, accordingly, they can read but struggle to write.

Purpose:

Kobolds are created by non-evil aligned dungeons that have no interest in creating more barbaric monstrous races like goblins, orcs, and the like. In this role, the kobolds are intended to be servants, companions, and guards. 

Kobold Servant - a common breed that acts as a footman, valet, or otherwise just a menial servant. These are very common and are represented by good natured breeds, or herding breeds of dogs. Kobold servants can become bossy and aggressive if their charges deviate from their normal routines, and sometimes they have to be reprimanded. They are also generally good workers, but are terrible in cooking roles as they tend to lack self-control around food.

Kobold Protector - less common, Protectors are drawn from guard dog breeds are are intended to armored and given suitable weapons where they act as bodyguards for specific individuals or guard a specific location. They can be aggressive and give proof to the root of the word dogged. Groups of protectors often have to sort out their pecking order, and then work well as teams. 

Kobold Hunter - Hunters were initially created to assist ... in hunting. Shocker. They are also steadfast companions for adventuring and favored for being dungeon hirelings for adventurers. They are good at tracking, can retrieve dropped items and loot, can scent out ambushes and traps, and generally work well as distractions, unbalance foes, and function as some of the best combat assistants. 

Kobold Companion - the least combative, the companion is intended for the wealthy and the powerful, where they use their sharpened senses to keep an ear and nose out for danger, poison, and lies. This is where you find the smallest, most ridiculous purse dog breeds of kobold, though they are still regular small size and not scaled to the actual dog breed. A shi-tzu kobold and a golden retriever kobold will be roughly the same size and not different meta-game sizes.

Kobolds and Racism

Kobolds are common in the DungeonVerse, though almost non-existent in Terrasquestone (that dungeon has long since invested in Wights as its mob of choice). In places where the dog men are found, they are largely treated as property. They have the same overall temperament as dogs and the same lifespan. It is normal for humans to keep them as pets, especially if they've gotten some that are no longer tied to a dungeon, which, also, is common. Where does the racism come into play?

Elves.

Elves like to point out that the relationship between humans and kobolds is almost identical to the relationship between elves and humans.

It's a complicated relationship and varies from place to place. The general arguments are based on the fact that kobolds are loyal to their masters, they don't complain, and the rest. The counter-argument is that most kobolds don't have the mental capacity or understanding to realize they are functionally slaves who are often bought, sold, and traded, as well as being eugenically bred for specific purposes or roles, and their lives are easily thrown away should it serve their masters.

Limitations

The canid kobold often struggles with self control. They are terrible liars, and likewise struggle with being stealthy, being quiet, and are massively food motivated.