ETYuma posted a fine response while I was writing my own response 🙏. I will post my response too for reference:
The structure is like this:
✅ [A] is [B]
✅ [The biggest difference] is [that the latter share the spaces].
✅ [The biggest difference {between working dogs and companion dogs}] is [that the latter share the spaces {to rest, dine and sleep}].
✅ [The biggest difference {between working dogs {typified by guard dogs} and companion dogs}] is [that the latter share the spaces {to rest, dine and sleep {with their families} {indoors}}].
typified by guard dogs ~ like guard dogs
The biggest difference between working dogs (like guard dogs) and companion dogs is that...
For reference, there is a small mistake in the book.
✅ The difference between Bob and my sister is that the latter likes cats.
❌ The difference between Bob and my sister is that the latter like cats.
❌ The difference between Bob and my sisters is that the latter likes cats.
✅ The difference between Bob and my sisters is that the latter like cats.
❌ The difference between working dogs and companion dogs is that the latter shares
✅ The difference between working dogs and companion dogs is that the latter share
