Puppy suckling and kneading her toy?

She is comforting herself by doing this on the toy. If you remove it, she will be emotionally distressed and might start sucking on her own flank or paw or her bedding. It won't cause problems with her teeth. Get a couple of other similar toys and switch them out so she has several to choose from, and take one with you when you go somewhere. She should outgrow this behavior.