I was brought up with dogs and am not scared of them, nor do I dislike them. I do however dislike the owners who can't be bothered to train their pets, treat them like babies, let them run loose or on very long leads in public places and expect everyone else to love them (I'm definitely not saying this applies here, btw!). The "he won't hurt you, he's only playing" mantra is so irritating. Especially when, as happened to my husband, the dog then proceeds to bite your leg, drawing blood through denim jeans. Apparently that was because he was carrying a newspaper. Good job it wasn't one of our young DGS carrying it then, isn't it?
As you say, your grandchild has to come first, OP. Give her time, away from your dogs altogether, and she may grow out of her fear. On the other hand, perhaps she won't. When you say they are fussy dogs and like to say hello, does this involve jostling her or jumping up, which she would find scary?