(((((SallyBrown)))))
Wow, I can really relate to how hard your situation is.
I am lucky that my T is very wiling to admit when he's wrong. It would be SO crazy-making if he wasn't...because I think I would constantly be questioning my own perceptions, or battling an uphill battle to feel heard, or wondering about HIS perception of what's going on, or...??? Probably a combination of all of that and more, and it would totally derail my therapy.
My own recent experience with taking a break during an impossible situation was that it REALLY helped. It was sad, and hard (especially because I thought it was the end of therapy, not a break)...but having some space helped me sort things out and gave me enough distance from T to let the intensity of my feelings (and probably his feelings) to calm down a bit. And it's so much better now.
I know it's sad and hard, though. Have you told T you're planning on taking a break??

