I wanted to add to your new reading list
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the book "I Don't Have to Make It All Better" -- it has some really good sections on validation, not just for your wife, but for your daughter too. And it doesn't label anyone as BPD, so that avoids the sticky issue of pointing out the mental illness. I like Panda39's suggestion, too, The Power of Validation. Both are good. The first one has sections for teens, as well as for adults so it might help you with both relationships, and give your D some tools to help minimize conflict with her mom.
People with BPD have a higher-then-average need for validation, and that turns things upside down when there are kids involved. It's a role-reversal for the parent-child relationship to expect that the child is going to validate the parent, but that's what is happening.
Take validation for a spin and see how it works. If you see that it works for you, maybe share the tool with your D and tell her this is a tool to prevent her mom from escalating things to high conflict.
You can see a short thing on validation to the right on this board ---------> under tools.
Let us know if it works. I found it was helpful to get feedback from people to see if I was phrasing things in a way that was validating. Also, it can be hard for fixer/rescuer types because we like to control things and give advice. Validation is an antidote to that, so you have to really look closely at the language you use to make sure you are genuinely validating your wife.
It doesn't erase all conflict. It just helps to prevent it from making things worse.
LnL