I was wondering if squirrels are territorial and would fight? I've just got back from what was to be a pleasant late night stroll with the dogs and they came across 2 dead squirrels in the undergrowth. So, two of the dogs had a late night snack - UGH! I just hope they weren't poisoned.
Don't know if they fight with each other, but I have seen a squirrel being chased through a tree by a very large crow. It was a narrow escape for the squirrel, the crow looked very niffed off with it!
They might squabble a bit when young or later during the mating season, but not to the death and to see two dead squirrels together suggests an unnatural cause.
I'd be worried about poison as I know that some people get very annoyed by squirrels taking the food they leave out for the birds. They may have been shot though which would present less risk to your dogs.