Starter Territory?

Can someone please explain why the starting quests recommend I have 5 wolves to hunt, 1 to pupsit, and at least 1 as a scout, yet I don't have the territory space to have that many? 

What is the actual logic that went into this?

I get that I just started and getting currency will get easier, but I feel seriously stuck right now because I can't find the currency to expand, can't find the materials to build another cave, and can't even build a robust hunting party because I don't have enough wolves because I can't find the currency to expand.

I can make no progress and I am desk-poundingly frustrated.

It may be a recommendation, but it isn't stated that you need that many /right now/. It's something to work towards. :)

It is perfectly feasible to work with a really small pack at first. If your pack is small, they don't eat much, so you don't need a full hunting team right off the bat. Scouting helps unlock new areas to explore in, but you can find plenty of stuff in just your home biome. Pupsitters are not needed if you hold off on breeding/don't care about those tutorial pups much or if you just use a wolf as a sitter until the pups' survival rate is high enough for you to remove them and then reassign the pupsitter to a new role.

It looks like you have several wolves right now, so you're doing OK! A 3 or 4 wolf hunting team is perfectly fine. Focus on critter trails for now and hunt them as much as you can and they will build their role proficiencies and team synergy and get better with time. Explore a lot. Follow Bitter scents when you get those trails and when you get the encounter with the North/West decision choose West. Going Bitter and West will help you build up a stock of items for caves. Try and do the daily quest every day if you can (it's OK if it takes you more than a day to finish one though), because that is a seriously great way to earn SC. Don't feel in a rush to expand your pack, because you've actually got a pretty decent one going already.

I know it can feel frustrating, but Wolvden is meant to be a bit of a tougher start than Lioden. You're not meant to have everything in a short amount of time. You've only had an account for a day. You aren't going to accomplish everything you want in just that time span.Just take a deep breath, and know that, at least from what I can see, you seem to be doing pretty good! I promise you'll get there. :)