These type of threads always enrage me in some form, because I feel that people jump to clipping first as though it is the answer to everything.
Please don't read anything I say from here on in as a personal attack, it is not. This is probably going to turn into a long winded rant that is both addressing your situation - and similar. It's very frustrating, so please bare with me and apologies in advance.
Many people come on these (and other forums) preaching wing clipping as though it is the best thing you can do for your bird without taking into consideration the bird, the owner, the situation, etc.
I PERSONALLY, am generally for flighted birds. I agree with clipping, in some situations, but for many I feel that it is a cop out.
Clipped or not, you need to watch your puppy and your bird. If he's flighted - he still might not be fast enough to get away from your pug. If he's not, heck, he's just a flapping piece of lunch on the floor by this point.
Doors - when living with my parents, Merlin used to roost on top of a door, which my dad was fond of slamming shut out of habit. Every entrance to the room was "Merlins on door" so that people knew to leave it as it was - it's a constant awareness of where your bird is and what it's doing that needs to be had when there is a potential threat (people not being vigilant, windows/doors).
Windows - clipped or not, a bird can get out of a window, if it's left open. The key to this problem? Don't leave the window open! We have our windows 'locked' on a tiny opening for ventilation. If we need to have the windows wide open, the birds are caged, or put in another room - with everyone aware to not open the doors to that room because the birds are out!
Merlin was taught the difference between a window, mirror and wall asap. If you can put stickers on windows/mirrors, it often helps builds distinguish between what is space and what is wall. May not help if spooked - but again, clipped or not, a spooked bird will still fling itself into something.
Giving him the chance to fly, mean he will be able to build up his ability to fly - you can't expect a bird to be good at flying without having had the chance to do so!
Merlin got outside one day, but because he was flighted, he knew how to get around and circle the area to stay near Mummy. He flew and flew and flew – he had the stamina to do so too, because he is left flighted and exercised well. A clipped bird? Caught up in the wind thinking "what do I do?" and not knowing what to do with itself. Personally, I feel that clipping gives people an incredible false sense of security. Clipped birds will be swept away – and more owners end up losing clipped birds because they feel it's okay to take them outdoors with no harness/travel carrier, etc! It's absolute madness.
Honestly, all these "flighted birds arn't safe in homes because of XYZ reasons" are pure "I can't be bothered to watch my bird when it's not caged" excuses. You wouldn't chop a toddlers legs off so it's easier to know it's safe when needing to go to a different room etc (as much as it might be appealing when they're trying to get into everything!) you work around it, you be vigilant, you reduce risks and accept the new routine as a new part of life.
I do understand clipping, for a hundred and one reasons it is a good thing and if I saw one here, I'd tell you about I swear. But for every argument for clipping, there is one for against - and as being flighted is a natural part of life for a bird, I don't see why we shouldn't try to accommodate it as best as we possibly can, until all options are exhausted. Each situation is different and I don't judge those who do clip, I just don't think it should be the "go to" response for an issue.
This is not an attack on anyone who clips at all. Heck, I've considered it and would even clip Merlin at one point if it hadn't been for his bad leg. + currently, Charlie, for his flying attacks on Andrew. But for 'safety', I think vigilance is much more important than clipping, something that is more often skimmed over as clipping is thrust upon people as the best thing to do, despite vigilance being needed as priorities whether clipped or not. You need to look at each threat, your situation, your bird, and decide on what is best.
Accidents happen, flighted or not... can you be the responsible enough owner to ensure those windows are closed, the hobs are off, the dog is secure? If you feel you/your household can't accommodate that, fair enough, some can't and it's okay. But if you can with a bit of work, why not?
I think flighted would work for you here. Teach your pug the 'leave it' command, build up your birds ability (and confidence!) in flight and see how you go. It's a lot of training for human and bird involved. Many are used to leaving things lying around, doors open, etc. It's habits that need to change... again, flighted or not.
Sorry for the rant and if anyone took this personally. Feel free to PM me about it and we can talk things through. I am pro-flight, but I am not against clipping. Just the attitude that clipping is best, regardless of individual circumstances.