At 3 months of age, Murphy is pretty young still, so he may still be in the stage of wanting to tear or chew up anything you put in his crate. I couldn't leave anything in a crate with my older boy until he was over 2 years old. My younger puppy was OK with beds by 6 months of age but she wasn't nearly as destructive in general as Chase was. I'd be very careful about putting any bedding in his crate for now, since he has already demonstrated that he might tear stuff up and eat it. Next time, the stuffing might be eaten as well. I agree that the digging at night is noisy and annoying but I'd work on shushing him and wait a while on the bedding myself.