I have to confess-- I couldn't tolerate this!

I can understand the dog's not understanding things about a "home".

But peeing on YOUR pillow? That is more IMO...that is a message!
Cats do this when they are spiteful.

I think this is part of her attachment grieving for the other person who she
was bonded to.

My husband had 2 doxies as a child. The second one developed encephalitis as a pup and was braindamaged (the vet wanted to put him down, but my husband's mother said she would take care of him). And even so, they could house break him without problems. (he was addled, and barked only at people when they LEFT the house, never when they arrived. He was rather dull and had little personality as one might guess.

I guess you are going to have to crate her severely and only remove the crate slowly. I would NOT let this dog into bed again, for a LONG time at least until she learns the ropes. I would also put her urine outside where you want her to go. Take the soiled papers and put them there, so she can scent them.
Also it might be worth a try to take Otto outside with Bruna...let her see him relieve himself appropriately. She might learn faster from him than from humans.

I would keep her in a "playpen" and not give her free roam of the house. Definitely set limits and show her that YOU are boss, pack leader (as Cesar Millan would say).

The other thing that comes to mind for me, about that bad breath is a kidney problem. Here you have her leaving YOU a direct message about urine and she has that stinky breath. They could be connected. My brother's cat had cystitis and she urinated on his CHEST while he was in bed, to tell him about it! Kidney and liver disease cause terrible bad breath. So I'd look at more than teeth if you go to the vet.

I don't envy you this problem....it is the one thing that I cannot tolerate about pets. I hope you get her trained soon, for everyone's sake!