Very interesting. It does sound like you are having an allergic reaction. I am sorry to hear that it is enough of a problem that you might have to rehome her. Initially I was going to recommend use latex gloves while holding until she got over the musk behavior (most do, but some do not), but the sneezing is troublesome. I wish I had better advice. Maybe try adding an air purifier in the room to see if that makes a difference.
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