I think it's a shame that your XW wasn't upfront with you to say she has started seeing someone rather than wait until she is ready for them to meet S. Your D so she shouldn't have felt she couldn't tell you in the first place. Did you feel your relationship with her was going beyond friendship?
I think you just need to continue to interact with her for your S but not for anything else. Why can she only see him for a couple of hours a week if you don't mind me asking?
Me - 47 H - 45 D-16 M - 6 years Separated - May 16
Don't leave me behind can't you see me I'm shining... (Years & Years - 'Shine')