Yes. It is disgusting. It's beyond "inappropriate". When it comes from a father, it's sexual abuse even if you are an adult, makes no difference. With this kind of behavior, I'd also wonder about how he behaved toward you when you were a child. If he had behaved the same way (which would not be surprising to me at all) it's a crime.

I can't tell you what to do, but if I were you, I'd do everything I could to break off all contact and to live on my own. I know it's easier said than done, but I'd make it my goal. At this point, I'd definitely tell him to cut it out and would threaten to report him to the police if he doesn't.

Generally speaking, it's extremely important to discuss those things with a therapist, but, to be honest, your therapist doesn't strike me as someone I'd trust. But if your question is if it is worth reporting, the answer is a big yes, absolutely.

In fact, as others have mentioned, it may be a good idea to report him immediately if he has access to children. I'd consider him dangerous to be around kids. Therapists are not the only ones who can report. Anyone can do that.