I think you are talking about the high protein product ground into meal from corn hearts - corn gluten? So if that's what you're talking about, yes, it can harm dogs. I have heard of dogs becoming disoriented and vomiting too.
To avoid this problem, water in the corn gluten meal right away when you apply it. Or work it into the soil and then water it in. Don't leave it lying on the ground in a dry state. Finishing the job with a covering of mulch will settle the problem for certain. Half the time I see corn gluten meal it has bugs in it. It gets applied, and the bugs either get eaten by birds or bigger bugs or fly/crawl away. It's not a big deal unless you have it in your house and the bugs get into your grain products in the cabinet.
Just in case you don't know this yet, use corn gluten for pre-emergent control and/or high quality nitrogen fertilizer and horticultural cornmeal for fungus control. Cheers!