After some frank no blame conversations with this person I feel like I am now in a position where I'd like a break. They handed that decision to me.

One thing that confuses me is the passive aggression which this person fully admits they directed towards me. Although they apologised they more or less said that meant I was a close friend - almost like a badge of honour.

I find this interesting and confusing. To me I wouldn't do that to a close friend, if I had a problem I would say it to their face directly. But then I don't have many close friends so maybe it's true.