Need help with training the owners

So, the story of the puppy. I believe most of you know it. Puppy out of control got older becoming an out of control dog and the owners decided to get rid of it. And I am here, and I maybe have an opportunity to stop it, but I don't know how.

The puppy was found on the street when it was probably less then 1 month old, was in the new home with month and something. I had a talk with the owners few days after, telling them about'problems' that might develop, bite inhibition etc. They have 4 kids, one is 3 years old, one is 8 and two are teens but not very interested in the puppy. For a long time, I was just acknowledging that the dog was there. it seemed OK when I was passing by and i thought that if the owners had problems they would talk to me.

A bit more on the whole setting of the situation: A boarding school on outer part of Hong Kong. 250 students + teachers.Great opportunities for socialization since the school is very international with a lot of crazy people so dog can see everything. There are also a lot of dogs around.

But, what happened: Dog was a bit shy and became even more shy, very cautious around people, barking. She is walked just around campus, off leash since she doesn't know how to walk on the leash. And she's crazy...

She is doing what many pupps would do: biting hands, pulling clothes. It wasn't managed properly and now, after two months, a result is a puppy you just don't want to be around. She will pull on the clothes really hard, bite hands and even pull while having your hand in her mouth. She will run at you, she will run in the circles around the apartment. it's just crazy. and she will do it on and on and it's very hard to get rid of it since if you try to walk away she will take it as a play. If you stay, your hands will be bloody. if you trie to use bunch of calming signals, she wont react at all.

But, as it usually goes, the dog is not a problem. I was dogsitting her for three days last weekend. First day she was terrible. But I started taking treats to our walks that were long, I was playing tug with her using one towel and one towel only. I noticed also that she liked chasing bikes. On the second day I started using a clicker, i would toss her stuff and she would retrieve. I would also walk out of the room every time she would bite. I put her means on the schedule and she would sit before me giving her the food or opening the doors. On the third day I had an Angel. She would come every time I called, she would sit and give a paw, she would sit to say please, she would look for her toy when she wanted to play.

But it was hard. Especially redirecting her to the toy: I would just sit there, and I removed her toys. When I didn't react to her attempts, she would just run  in circles around the apartment, looked like a neurotic behavior. My hands were totally bitten. But it was worth it. As I said, she was perfect on on the third day. She wouldn't run to the apaprtment every time she had enough of the walk or get spooked.

But now, a week later, her habits are back, and are even worse. She's just a menace and I don't know how the family can stand her I was in their place discussing my subjects etc. I was there for one and a half hours. She didn't stop with her behavior at any moment. she was just so full of energy. And I know something has to be done. NOW. But my problem..my problem is not a dog. It's the owners...

I started teaching her the sit and she sits occasionally.  They are convinced that she knows how to sit. And the owner is like : "sit" (she doesn't sit) "sit" (she doesn't sit). I say:" she doesn't know how to sit." And he's like: "Yes she does" "No, she doesn't" "Yes she does, she's just too excited" She doesn't" "When I sit on the couch and tell her to sit she sits" "She doesn't know how to sit"... It just didn't work. They don't consider her barking at people a big problem, they are spoiling her... totally:

"She has food out all the time and if she want's to eat she eats. If there's no food in the bowl we put it in"

"She liked that pillow so it's her bed. he also liked the cart and they are hers too"

"If she had enough of the walk, she'll just go back. If she didn't, you can't get her in"

And in few months, they will probably kick her out. Or, the whole school will hate her, they will keep her closed up in the room where visitors come and develop ways to leave the house without her storming out, on to the road, out of campus and who knows where. She's a smart dog, to smart for them. And I just can't explain them that they can't ahve a dog like that. i can't explain the importance of socialization, of bite inhibition, of setting rules. I always had a problem telling people what should they do with their dogs since I've been told off so mayn times.But I really don't know what t do. I can organize bunch of stuff. I can give dog treats to whole school so they would call her and give her treats when they see her in the walk. I can teach her to ignore the leash and teach them how to train her. But they just do't want to do it. it's not a lot of work, but this puppy is already our of cxontrol and it is getting harder and harder to do something about it.

 I don't even know what to tell them regarding the biting and shewing and pulling. It hurts, You can't move out. What to do. What to tell them. Where to start?