Chicks in the house - as long as secure/safe when you aren't with them will be a VERY GOOD idea and training tool. When we got our dog as a rescue (8-9 mos. old), he would chase anything that moved. Shortly after getting him, i got chicks they were in the mud room - like a breezeway - so not in the house. I would spend a lot of time - every chance I got -to hold a single chick and let him sniff. If he sniffed aggressively or licked hard, Chick would be pulled away. I would constantly admonish him to be gentle. When he did gentle licks or sniffs, the chick stayed. I again, would do this every chance I got for about 5 min. After about 1-2 weeks of this (and, yes, I alternated which chick - wanted them to get used to him & not run, either) I brought a couple in the house, laid on the floor, and corralled them in my arms, and would let Elroy come over an sniff. If he got too excited or 'aggressive (i.e. too rough) - I would tell him 'Gentle', if he didn't 'calm down', I would say 'leave it'...and 'sit'. This would get him to sit and calm down - but not get close. It took no time at all really for him to understand 'gentle' and that he needed to be careful with them. If he didn't calm right down, I would scoop up the chicks and away they wouldgo. Granted, I think he was a bit older than your Sherlock is now - but he had absolutely NO training prior to me getting him - none at all. By the time the girls were 8weeks and outside full-time...he could walk right up to them - as they learned to trust him/be comfortable around him - AND he learned to be gentle with them - and that they were 'cherished' by us and to be respected. That summer - if the older girls ran when free ranging and he got too close, the chase instinct would kick in some and we would have to do stern 'NO/Leave it" and pull him back with the leash.
While I don't 100% trust him with the chickens - if I put him int eh run with the chickens while I am futzing with the coops and runs (I have 3, he would be int eh main run - I might be working in that one, or in one of the other two - which are across the way a bit. Both he and the chickens are good with each other. They will do a 'fast walk' out fo his way if he chases a rat or something towards him, but he doesn't chase them, and they aren't freaked out by him.....I would love it if I could trust him while they are free ranging - but he gets excited by something and will take off...so it isn't so much chickens, as him not letting his nose and excitement get the best of him.
long story short: Yes, have chicks in teh house - at least for the first couple of weeks, expose Sherlock to them daily with appropriate complimentary or stern commands/reprimands as appropriate, and let him know these great smelling, interesting things are beloved by you and to be 'gentle with', and that they disappear if he isn't good with them...stay longer if he is. A great way to build trust and a relationship BOTH ways. AND: Yes, you chickens will discern the difference between him and a strange dog, so don't worry about that aspect, either. Our chickens clearly know him - but still send out the warning calls if another dog comes onto our property/near the coop.