The fact that she was so casual about it, with you right there, suggests that she's perfectly capable of seeing a naked man without any sexuality involved.
You are not overreacting at all.
We are all very close, and go out together.
Do I confront my wife, or do I confront my bestfriend? If she says she would still pick out his clothes with him standing there naked, then there might be a problem in your marriage, but if it's like I think, she will tell you that she would have immediately walked out of the room.
All three of her daughters are trying to make their names known in Hollywood, working as actresses.
Enter into a situation calmly and honestly, and you will recieve a calm and honest answer.