Everyone has different opinions on this. Here is mine.
My dogs are first and foremost my pets. Yes, they are working and sport dogs as well, but primarily my pets. They get to be loose in my house when I am home, they sleep on my bed, on the couch, play with each other.
If I have a training planned, they get some crate time. That could be the car ride to training, or crated at home. In between training sessions, when out at training, they are crated. It helps them rest and focus their energy on what we will be doing.
There are those that believe in enhancing, creating, channeling drive through deprivation. It can be very effective. It just depends on what your goals are for the dog.
I agree with your trainer that you should not be out walking and playing with your pup directly prior to a big training session. You want the pup fresh and ready to learn. Not tired and distracted by all the things moments ago he was allowed to smell and look at.
At home, it's up to you. One thing I do, if I plan on training, is let pup out if crate to go potty, then back into crate for 30-45 minutes, then back out to train, then back in crate for a bit, then out for a walk and free ball play. Separate out what you are doing, to be clear to the puppy, that each thing is something different.
The only time I use deprivation, is when my make gets more focused on playing with other dogs, then I limit his free time with my other dogs and bring more fun to training. So he remembers that I am the most fun thing. Not his housemates. I have not had to do this for a while, as he has matured, his attitude has changed a lot. He still enjoys playing with them, but will stop when told and does not get distracted, when training.
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