I am a mother of 3 & my eldest is a daughter who is 11 this year.
There are things which I do not allow my husband to do in the presence of my daughter too.
Such as respecting her rights by knocking her door, not kissing her on the lips anymore, only allowed to kiss the cheeks,
and be decently dressed in front of her.
But somehow I do feel that your wife could be over reacting as your daughters are still young thus the fatherly love & protection is important.
On a side note, you mentioned that you have been sleeping alone for 1 yr plus.
Could that have affect your marital relationship?
Perhaps try to talk to her calmly on a date alone.