Mom drama

So am I in the wrong? I have become friends with my husbands employee. She has a son around my daughter’s age. He is about to turn three and my daughter just turned two. Our friendship started out with me, babysitting her kid for free for hours on end multiple days a week. She kind of started some drama with me and my mother-in-law because my mother mother-in-law did not like how her son behaved. But He is just a little boy. So we have been friends for about four months now. She was dealing with domestic violence at home and I was there for her trying to get her through it. Trying to get her and her son out of that situation. She has since gotten back together with him. I have still been there for her. About 4 to 5 times a week I go over to my husband’s job and her job and I pick up her son and take him to the park with my daughter. Because otherwise he would just sit in the break room with his tablet in a high chair her whole shift. So my husband is the general manager of the restaurant that they work at and she is a hostess. We play video games together. We talk on the phone a lot. We bond about motherhood. She knows how difficult the past month has been for us. we’re dealing with some family drama of our own. And this week has especially been hard. she has been super insubordinate at work towards my husband. She mouth off to him starts arguments is just always trying to pick a fight. She goes over his head to the owner when he tells her not to do something. Is always complaining at work and on the phone while she is seating tables… she has even gone as far as trying to say that my daughter is a bad influence on her son because she’s going through her terrible twos. Now I don’t just let my daughter throw a fit. We set her down and get her to calm down and take a breath and that is that. But she lets her son carry on. He basically gets away with a lot. He doesn’t listen. I understand he’s witnessing how his dad treat his mom at home and he’s acting out because of it. But she’s looking outwards instead of inward and trying to find someone else to blame. I have been super patient and understanding and I have been a great friend and I’m not trying to air out her laundry, but I am absolutely upset because she takes whatever happens at work when she gets in trouble for mouthing off to my husband when he’s correcting her on her being insubordinate. Sooo she texted me about an hour ago, saying that she doesn’t wanna be friends anymore. And honestly, I’m fed up. I love the friendship that our kids have but it’s not worth it. She seems to think that because she is friends with the managers wife that she can act however she wants at work. that’s just not the case. What do y’all think? Am I wrong to let this friendship go? And I know that I should not be airing out her dirty laundry, but I’m just trying to make y’all understand what I have been dealing with within this friendship. My daughter is so attached to her son that she throws a fit when his name is even mentioned because she wants to go and play with him. They have such a wonderful friendship and I hope that our kids can still be friends…. But I feel like this is way too much effort.