My 8-month-old puppy lost interest in potty training after I started socializing him more. What can I do to prevent losing progress?

My 8-month-old Pinscher puppy had a bad experience on his first walks because a woman let her dog off-leash corner us and bark. Now he barks at other dogs, and even at people at night.

Well, I recently spoke with his vet, who recommended that for better progress, I should prioritize socialization. We should spend 10 minutes on our walks just sitting and watching people and dogs go by (my neighborhood is full of strays). He also recommended rewarding him with high-value treats when he sees stray dogs and doesn't react. We've been doing this for two days now, and he's improved a lot.

The thing is, until now, I had only used high-value treats for potty training. He knows the "go pee" command, and I take him out every two hours to avoid accidents. He would pee every time at first, and then we would walk for 5-10 minutes. Well, now that he's getting treats for watching dogs, he's simply lost interest in obeying the "Go pee" command. He focuses on looking at anything even slightly distracting and then stares at me, waiting for a treat, whether there are people/dogs around or not. He can hear a leaf fall or a bird sing and still look at me, waiting for a treat. What can I do to prevent this? I already give him several treats for peeing/pooing, and I praise him a lot to make it more exciting. Should I use different high-value treats for each thing? If so, what healthy and tasty treats can I give him? His current treats are very small pieces of sausage.