I see a few possibilities:
1. Ml and fl are siblings (I don't want this to be an incest)
2. The original daughter actually died and this was some false flag to make the dad look like horse shit.
3. The lady's alive and could become an obstacle or ship helper in the future.
Either way, the dad is a homophobic stinky piece of horse shit.
@APSINTHOS the setting kinda makes sense for everyone to be homophobic. Either way, dad isn't a good character.