it's that attitude that says "everything's ok, why does it bother you?", as in "I didn't do anything wrong, we were separated, it doesn't matter what I did", and to continue to flaunt it openly, as in "I don't care", is it possible she's totally oblivious to the effects that the OM has had on you, I guess anything is possible. To keep a pic of the OM's daughter, not only reminds her of his daughter, but reminds her of HIM, you can't make the association with one without making the association with the other.
Her continuing to work with the OM even on a limited basis, I wouldn't be comfortable with that either, they had an affair which they carried on secretly for a portion of time. She's had to rebuild your trust, she isn't oblivious to that but she needs to be cognizant of the fact that she can't repair what she did in several weeks to several months and then slip up here & there again, it's going to throw up red flags that are impossible not to pick up on.