She does not associate the word `bad` with what she has done wrong because you have , in your own words done this, "I`ll bring her to the side and say"bad".
Your dog needs to be told `bad` in stern voice at THE ACTUAL TIME she is doing the `bad` act. NOT seconds afterwards when you have her by your side.
If you have her by your side and praise her and then when she is by your side and you chastise her, she is confused and wonders about your tone of voice and body language as she is expecting praise, so she shows her confusion by wagging her tail and licking, which is her way of telling you she is confused about what you are saying to her.
Every dog does NOT know what the word `bad` means. Also the tone of the voice is just as, if not more, important than the word, although its always best to use the same word for every action of the dog and then tone and word are linked in the dogs mind.
If your dog does something YOU deem as wrong. As the dog is committing the crime or when the dog is just THINKING about doing it, you say "Bad` or `NO` or whatever word you are going to use and you distract the dog with an action like eg; clapping your hands hard or throwing something noisy on the ground near the dog, and along with the chosen word very sternly. Praise the dog and reward with a treat or toy etc, when it stops doing the misbehavior, After 6-7 times if doing this, only the word will be necessary to stop the dog in its tracks from misbehaving. Its called conditioning and is akin to training and if done properly is very effective.
There are many ways of distracting a dog, some dogs need harsher distractions than others, according to the dogs temperament, and also need more incentive rewards.
Yes, most dogs will react to an owners or pack members change of mood and attitude, (body language) and if the owner is upset eg;crying, it can cause the dog to feel anxious and it will seek reassurance from the owner, eg: licking them, ears back, panting, putting a paw on the owner, which is often mistaken by the owner as the dog trying to comfort THEM.
GSD owner for 56 years.