From the wife's perspective it's not really all that bad, but when you think about the fact that husband doesn't know that wife knows, so he willingly cucks himself with himself, pretty much still raises a fuck ton of red flags
He disguised himself and came on to her, presumably to test her?
She immediately recognized him and thought "If that's the way you want to play it so OK"?
And then...
the wife is W the greenest flag but the husband is sus and full of red flags bc he doesnt know that she knows and does this. so he may have trust issues until the situation comes out to light.