The woman has no boundaries.
Fortunately, you do. I think you are a hundred percent right. It's her child, it's her place to "explain everything". And with Dad not there, there is NO reason for the child, or her, to be at your house.
Remember, though, you have some recovery, she apparently doesn't. So thank her for the kind "offer" but explain it to her just like you did here. Don't expect her to agree, that's all.