I will agree that her staying doesn't absolve her, BUT he's not likely to get any type of an apology from someone who has NPD....neither are her daughters likely to receive one.
I will agree though that allowing this situation to go on with no consequence is IMPO not a good thing. Her not acknowledging it and Bube you not bringing it up either....just sweeps it under the rug. I think right now you have the perfect opportunity to "separate" even if only temporarily. As someone else said (I believe it was BF) "separation" doesn't have to be a permanent thing, but I do believe in this case, all of you need this time to decompress (meaning you and your daughters)....and your W needs to see that just because she changes her mind that it doesn't mean, she's off the hook for her behavior.