There are absolutely risks embedded in psychotherapy even when the practitioner is the most ethical and competent. In my state informing clients about potential risks is a required part of the informed consent before therapy starts.

I would not waste any more time with this guy and would start looking for someone new right now. He sounds incompetent to me. I understand where he is coming from, but his way of approaching your problems is incompetent. Usually inexperienced therapists behave like that when they jump to conclusions about the causes of the clients' problems without given themselves enough time to establish trust and to collect more information. An experienced and competent therapist is supposed to meet the client where they are, not where the therapist wants them to be.

So, yeah, I'd dump him right now and look for somebody a little wiser.