Hi married21years,
we all have made mistakes in the past (and will do in the future) and experience a certain amount of shame .
Your wife is afraid of you and has blown whatever material she had, likely added some distortion and dumped in D. That was unfair to D and unfair to you . Whatever it is remember JADE won't make it any better. Also keep in mind that you may well be over-reacting exactly as your wife baits you to do. Wife gloats for scoring points. You feel devastated. D simply heard a story and will
build her own view based on your behavior in the past and in the future towards her. Your behavior counts 10 times more than words from your wife as it is always for words vs. behavior.
this is completely unacceptable and the consequences of her actions are hers and hers alone
You staying away will be a consequence mainly for D and possibly has lifelong consequences for your relationship with D. Staying away confirms the truth of her words.
You can let this false shame steer you and stay away. But then the only adult in the family would be missing