Oh S, I am so happy for you that you got to hold your grandbaby. And good for your daughter that she said that about the baby's birthday. To heck with your h. It is his loss all the way around.
You and your children and now your grandchild and soon- to- be son- in-law are your family. Put all your focus on them and yourself.
I would not get involved with any of the your h's relationships with your children, grandchild, mother in law. They are his to manage.
S, dont beat yourself up about backsliding. It is difficult. Try to pull back, if you can. H is really not worth it right now.