I read that same article Miles did, but he beat me to the blog. To respond to your first question, I think that the health inspector’s job is to make sure public places are clean, and the dog was a source of contamination so visible that no matter how famous Cody was, the health inspector had to do his/her job and ban Cody from the store. It would be an embarrassment to their agency not to take action. In private residences, sure, a dog is still a contaminating agent, but there’s no health inspector (besides your old crotchety grandmother) there to say anything.
For your second question, wondering if Cody should be allowed to “work” in a human job, I think its fine and all in good fun. The store owner should be applauded for his creativity. Humans see dogs in a much different light than they do humans, and Cody was not there to actually work; he was there for pure entertainment. It’s not as though a human named Cody would attract so much attention at that store (unless he was a giant or something). I don’t think Cody was even taking away a human job. Just my opinion though.