That is indeed a thing that happens with progesterone. It took my sex drive and dialed it to 11. Not entirely unwelcome, but definitely troublesome at times for the same reason you mention. I don’t use my dick anymore for that very reason. Anytime I tried, it would immediately send me spiraling into dysphoria, so I stopped trying. This did create a very awkward situation where my partners have zero idea on how to properly pleasure me now, but they are receptive to my input when given (or just don’t bother, but another story).
When it boils down to it, you should probably sit down and communicate with your spouse. Let her know how you feel on the matter. Let her know what’s going on and explain how all these changes are affecting you. This is important as well simply because they may not understand how badly it is affecting your psyche and may not truly understand how your changes are affecting sexual matters. At the end of the day, nothing beats communication when it comes to your relationship with your spouse.