The funny thing is that the IG clique she’s in is ALL stay at home moms...being a mother is a big part of their identity. The irony that they are all completely not present in their realities with their children is totally lost on them. You really couldn’t write this shit.
I would think (not sure) that one significant contributing factor in psychological harm to children in context of divorce is the undermining of notions of love, loyalty. And I would think being front row observers of instability in human relations is also damaging to young ones.
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My sincere condolences to OP regarding this awful situation, but please consider if continuing this situation will in fact have the same (if not worse) adverse effects on your little loved ones as a divorce.
You also mentioned your so-called-wife has broken relations with her parents. What about your parents? It is critically important that FAMILY love, fealty, support is demonstrated to your children.