Do dogs like to be squished?
It's important to remember that some dogs may really like hugs from their human family, but not from new acquaintances. It's the same way we like close physical contact from friends or family, but we might feel awkward or freaked out if a stranger gets too close to us.
Why do dogs like to sleep squished?
Many dogs also like to sleep curled up or on their side. It's likely that your legs are simply conducive to these positions. Your dog wants to be both comfortable and to be close to you, and sleeping between your legs is a good way to accomplish both.