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POA is now removed from you. I have the feeling that elder son who is now POA may be filing with APS soon.
I would go to see an attorney ASAP for options of how best to handle all of this. We can't here know the details. This is a serious legal matter now. I wish you the best but you need expert help.
But... the house issue is sticky. What exactly do you mean she "gave" your husband her house? Did she add his name to the deed? Or change the deed to his name only? Or did she just promise to give it to him? Also, there are tax and Medicaid implications of this large gifting.
Lots went wrong in this situation but not sure how to remedy it. If it was her understanding that the house was in exchange for caregiving or for her to return to live there... was this a verbal agreement? Unspoken? Written anywhere?
Why is your husband allowing his Mother to move in with you? Does he side with his Mom on this? If so, this now sounds like a marital problem, for which couples counseling would help. I would do this before she moves in. Even if he doesn't go, you should. Or, talk to an elder law attorney to see how to handle it.
She can blame you all she wants... if you're not guilty of anything. But we are only getting your side of the story.
IMO your MIL's anger does not mean she's a narcissist.