UPDATE:
Mushu went to the vet and he is perfectly healthy except he has really dry skin that causes him to lose his hair.
As for the raccoons, I haven't noticed any raccoons recently! Mushu hasn't been barking at night! I'm really happy about that! So far, so good yay!
Yay! So glad to hear Mushu is healthy!! And it sounds like the raccoons might have relocated as well. Good news kuriso