A lot of bullies do the same thing especially as a puppy, and will sometimes outgrow it, and sometimes will not. You need to take her blanket out of her crate until she's trained, and then try giving it back to her after her training around 5 or 6 months old. My two guys cannot have any blankets or pillows in their crate as they chew on them and eat them, they also cannot have any soft toys or stuffed animals for the same reason. The only toys we can give them are hard toys such as the Kong brand of toys, and balls. They do have two dog pillow beds that I bought at HomeSense that they can lie on when they are with us, and we can supervise them, and stop them when they try to chew them. We just say no, and give them a toy to chew on, and this will redirect them from chewing their pillows. When they are in the crate, they sleep on the plastic tray. It used to bother me that they couldn't lay on something soft, and only on the plastic tray, but they seem comfortable when they sleep at night, and they are safe from chewing and swallowing pillow material and stuffing. I would rather see them sleep without a pillow than them eat the pillow and get sick.