"I will move out. Do the activities that reward me, spend time with my daughters. Give her all the space she wants, only interact with her as needed to handle the logistics of co-parenting. Learn more about myself, maybe date casually or do social stuff to overcome some of my innate shyness and insecurity. "

Ya got you. I think the space she wants is emotional not physical. Some benefit to moving out in this respect but you'll loose out on opportunities to validate, connect, lead and all those "manly" virtues demanded of you and she may start an affair given she has it easy. Hard to change and GAL in the same house. Either way it's a slippery slope. When you're on one of these CYA.

How's your work going?
How's your work going?