Should I dump her?

My best friend that I’ve had for five years my be becoming toxic for me. She lives in Idaho and we FaceTime regularly. She has been acting kind of bitchy lately and saying things like “oh he must be desperate if he is with her” and “dump the small dicked asshole” and on our most recent convo I told her I liked her phone case and she responded with “oh thanks, I stole it” ?!?! Which she then proceeded to say ya I’ve stolen about $300 worth of stuff. She also tells everyone that she thinks her dad is gay and as a decent human being I don’t support assuming someone’s sexuality. And I just don’t know if I should continue not saying anything and being the nice guy if I should cut her off and create an frenemy please help. Thanks!