I don't think being overwhelmed by empathy is the same as stupid. And I think it is easier, but not stupid, to see something when someone else is involved rather than one's self.

This might be a time to stop and ask or write down even, what the therapist actually said versus your interpretation which kind of sounds more like it is coming from your past not the therapist. Usually the stupid stuff, termination stuff and so forth - those terms and the like, have come from your mother, not your therapist. I don't see that this time is different. I am not saying this is easy, but could you try to focus on the experience differently? It sounds to me more like you are going off on distorted assumptions and internal past experience rather than what the therapist actually did.