My 2 cents? It's the dog owner's fault for not training them better, and if the dog is really acting weird (like needing to be taking out a ton ect) perhaps a vet visit is in order. The dogs sound untrained and it sounds like a chaotic situation and that rests with the owners. Second, are the dogs microchipped and licensed? if not, again the fault lies with the owner and its your MIL's responsibility to take care of the dogs in order to get them back from the pound ect.

Aside from the dog issue, I think an important dynamic was revealed. Your MIL doesn't handle stress well and screams/yells ect and you are the odd man out in your living situation. When shit goes down, it's your fault and that's an unhealthy dynamic and moving out sounds like the best move for all involved. However, i think it's also fair to ask if this is a pattern of behavior or just a one off incident. If it's a one off stress incident or MIL just doesnt handle stress well, moving out and seeing her on a limited basis may really help create some distance to keep this from happening again.