I think your instructor is WAY OFF BASE. All your baby needs is more work.
I haven't worked much with the yorkies, so they are not too well behaved -- we are working on it.
However, Boo the Boxer heels off leash, the two Irish setters I had would heel TANDEM OFF LEASH no matter what distractions might be present.
GOOD LUCK! YOU CAN DO IT! I would work with your baby, find a different testor and once you have your Award, go do a demo for the first trainer.
