The issue about the seperation thing is that I have nowhere to go. My parents said that if I leave the marital home then that will be a sign that I can be self sufficient elsewhere and the legal process would take this into account.
So why did you suggest it as an option if you arent going to follow through on it?
What is your plan if she doesnt actually stop texting him? Sure, she got kicked out of her parent's place, but her waywardness hasnt stopped or even subsided from what I can tell. So I dont see how playing nice and politely asking her to consider your feelings is going to actually have any positive impact on your sitch. Its likely for the best that she didnt go to MC with you - I dont feel like it would have a good result given her level of waywardness.
Just like I cant imagine her going to see the counselor alone next week. In her eyes, YOU are the problem...not her.