I don't think you should end them. But I understand your sadness.
I'm sure she meant nothing bad... But she should not have said that. Psychotherapy process - including hugs - is just between you and T. She shouldn't make any comments.
But - again - I'm sure she was trying to be friendly. Seems she really likes you.

If I saw my T hugging other client, I would die of jealousy...Hugging in waiting room sounds strange to me.