Yeah, you were treated wrong. I do get it on their side, they do get people who just don't try and are a PITA. So, they are reacting to them not you.
I think, though, that they treated you wrong in giving you the dog in the first place. I, too, once rescued a dog. i was told he was "wonderful with other dogs". He wasn't in my house more than an hour when he attacked my elderly little male... he hated male dogs. He got along famously with my female dog, they would have been best buds.
I had to take him back, my old guy, like your cats, were my responsibility and I couldn't keep the new dog. I loved the dog I tried to rescue, I picked him out carefully after talking with the foster mom - I wanted an agility dog and he would have been perfect. But, the foster mom in my case, like yours, either purposefully or accidentally miss-represented the new dog's personality to me.
You did right, and I hope if you want a new dog that you try again.