You find it sitting on a ledge in a pool in the Aquatic Zone of the Lab. It's stomach is quite large, and seems to be getting bigger. It's mouth has ink leaking from it. It notices you then.

Female Squid Dog: Oh- Hello there User. Im the Squid D- She pauses to try not to puke out ink.

Female Squid Dog: Ugh... Oh god my belly hurts...