Sometimes I find that "tanuki" in anime is used for (or translated as) red pandas. But technically it should be raccoon dog. Does anyone know why?
The correct translation to "tanuki" is raccoon dog. If it is translated as something else, it is most likely that the translator do not fully understood the word and translated to panda for simplicity.
I guess you are referring to the anime, "umaru". Your understanding is correct, tanuki = raccoon.