2 Answers

That's ok, My daughterinlaw has a dachshund, it has an old raggedy blanket he carries around - Every night, he brings it to his doggybed and arranges it just right.  He takes it with him just about everywhere, its his security blanket.

One night my wife an I sat watching him mess with this thing for about an hour, finally when he was finished tugging and pulling he sat down and looked at us, i swear to this day, he made an outline of a dog with it, it looked just like him.. My wife will swear to this too.. I don't know what was going on in his dog brain for an hour as he arranged it, but there was something happening.. LOL Don't worry about it unless your dog doesn't care what towel it is, give it one and make the dog understand  that 'this is your towel, the rest are mine.." 

be glad it is not your panties.... They are mking their bed comfortable... it is normal. It you want her to stop... put the towels out of reach.