Friends with benefits calling me baby?

My story is a bit complex, but hear me out. I (32) male been seeing (44) female for over 1 1/2 years. Our situation has taken a lot of twist and turns, so I'd appreciate some feedback.

She is a widow, 2 teenage kids, husband died in motorcycle accident. She found out he was cheating after his death ( doesn't trust anyone... figures) but doesn't know I know this.

We started non exclusive, things were going great. Till one day she somehow knew I was talking to someone else on the same app we met on and completely flipped out. To be fair we both discussed feelings, but for a number of reasons said it was a bad idea. But we also had names, bought nice gifts, etc, which to me suggested something else was going on here.

Things got better and intense between us again (in a good way) till I finally brought up I would be opening to dating if she was. She almost completely shut down on my and said we needed some time to let things cool off. But kept reiterating she didn't want to lose me, did get jealous, but didn't want anything serious.

Things got real bad when I caught her with someone else... not gonna say how, but, I definitely let feelings get the better of me. We had a big blow out and she said point blank "I can fuck whoever I want, do you want this or not?" So we worked it out to our original agreement while I kept my options open for something serious with someone else.

I did explain to her how I felt and said that the gifts and names had to stop. I felt thats more dating/being exclusive. Well, with the holidays recently she still bought me something (when I didn't have anything for her) and still calls me baby or even daddy.

When I was stern with her, I got the silent treatment. Am I wrong? Am I making a big deal out of this? Does she still secretly want more, but feels like it's not worth it? Any perspective would be appreciated.

Friends with benefits calling me baby?
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