I agree very strongly with Tallula and Gabbysmom. SMs W knows exactly what she is doing. There is no fog here. SM you talk a big game about being Alpha well guess what? Allowing your W to live in hour home while actively having a physical affair with another man is pure Beta. As long as you allow her to do this she will and she has zero respect for you. Trust me I know I was there before.
Ive told you before your W loves having all the power/control right now. Until you put up some boundaries she will not stop having an affair on you.Your W is not going to just come to her senses. Rarely does that happen. She is being feed her cake by you SM.