sweetk, welcome.

Glad you found us!
In my experience, it's all messy. When boundaries are set after having been fuzzy or nonexistent, it throws everyone off. There's blaming and sadness and anger and frustration. The good news is that healing happens, people return to equilibrium (some take longer than others), and things can continue in a different way.
I'm sorry to hear your dad holds grudges for a long time. I'm sure that's hurtful and unpleasant for everyone. That dysregulation is his responsibility, not yours to manage. We talk about boundaries as something that keeps you in your yard, handling the parts of life that are your responsibility.
Are you able to (or have you already) clarify boundaries around him attending future events? "Dad, we love that you want to support granddaughter. If you ______ , we will not be able to include you in these invitations." And give him a chance to attend one more? Of course, this means enforcing your boundary if he dysregulates.
I went LC with my bpd MIL and found that the space and time were healing. I needed the peace long enough to think clearly again, so that when I did interact with her, I knew how to handle it. Space can be a wonderful thing.
What part of this are you responsible for?