Your WW is getting the best of both worlds, she's getting the excitement of meeting new people romantically, and is getting the "family time" when nothing else going on, and she's still getting sex from you when she wants it.
You don't have to go straight to D if that's not what you want, but you mayor want to get a place to yourself (you or her move out), cut most communication out and all physical contact, and find your happiness. Once you are in a place where you are happy on your own, you'll have a better idea if you want to go back and put in the work to piece, and by then you'll know where she stands.
while your finding yourself/happiness, she will be doing the same, and her actions will show you if she is someone you want as your W, or if she is someone you couldn't be happy with.
FYI, conversations like that are hurting your chances of ever reconciling, and she will never admit her faults while wayward..
If your not able to detach (which I wasn't), I suggest you consider moving out , but talk to a lawyer before doing so (I didn't have child custody to consider). NOTHING is harder than in house separation if your not able to detach.
M - 9 1/2 years 5/5/16 - Bomb drop - 3 week EA 10/31/16 - We sold house 01/10/18 - D Finalized