It is a sheep who was traded against a dog that is forbidden to be brought as an offering. See the gemara in Temura 30a and following. Such a sheep is forbidden as the verse continues: as it is "abhorrent to the LORD your God.
Regarding dogs specifically artscroll, quoting Ramban, explains
Dogs are considered abominations because they were often trained to be
vicious and this became a menace to the public. It is common for
sinners to try to legitimate the profits of their activities by
contributing to charitable causes. By forbidding the use as offerings
of animals given in exchange for harlotry or for dogs, the Torah
symbolizes that ill-gotten gains cannot be cleansed by using them for
holy ends; God regards such a practice as an abomination.
Beyond the general prohibition of exchanging animals for sacrifice (the topic of the tractate of Temura based on Vayikra 27:10), there are other animals which are also prohibited as sacrifices, e.g., a cow that gores and kills a Jew and its offspring (Temura 30b).