In Law Issues

Ok so idk what to do anymore, my MIL drives me nuts, she is overbearing and toxic. Long story short:

-doesn’t listen to my husband or I (sleeps on the floor in my daughters room when I’ve told her not to, husband told her to leave our house and she refused, opens windows because she is hot - it’s 30 degrees out, we keep our house at 69 and my 15 month old will get sick)

-talks shit on us to my husband’s sisters

-extremely manipulative (cries over everything and claims she is the black sheep)

-has had an affair and told my husband she wouldn’t go to our wedding if he told his father

-90% sure she is bipolar (her mother was and we notice the highs and lows). Refuses to get help

She used to watch my 15 month old 2x a week but I can’t deal with the mood swings and craziness anymore - I want to distance myself from her because she is a toxic person. My husband and I argue weekly about her. am I overreacting?