Agree with all of the above.
She almost certainly has been cheating sexually, the odds that she hasn't is like, well, zero.
She is smoke screening you.
She has a friend that is a cheater.
This is way out of bounds for any reasonable relationship.
She is not your dream girll, but she has led you to believe she is someone she isn't. Now, she is showing who she really is. You need to believe her. It is hard, I was in shock. I couldn't believe some of the stuff I heard.
Your wife is more messed up than you, or she, realize, and she is all fogged in.
You can cut your losses, and divorce, much easier route to go.
You can confront, deal with the lies, the blame shifting, the gas lighting, and enter counseling for 2-4 years, which will eventually get you to the truth which you will have to deal with, and she will need IC for a long time as well, and you might, just might, save your marriage. You just might find out how really messed up your wife is.
When you confront, you will be lied to, for months if not years. The truth never comes out directly. Odds are, no matter what you do, you are to late to stop the physical affair. Odds are she and the friends were drinking, met these guys, had sex, and now are trying to convince themselves that it was special somehow...it never is, cheating is RFUB (really fucked up behavior). Typical wayward behavior. At first you want to figure out why the AP farts bubble gum flavored rainbows, but after reality hits home you realize that their farts smell just like shit, like everyone else's.
You have to realize, you are not making her decisions, you just make yours, and make it clear, lay down the line in the sand for yourself...she does whatever she wants, you just don't participate.
The friend, she has to go as well, not just the AP, for your marriage to thrive your wife will have to change, a lot, and it will not be easy.
I nearly divorced my wife two years into counseling, she did something very hurtful. I even told the kids we were divorcing. Horrible day. If I had to do it all over again, I'd sit my wife down privately, and tell here that what she said or did was up to her, but I would not allow her to play games with my heart, that I am a human being and didn't deserve to be treated this way, and then I'd tell her to leave until she was ready to respect that (she wasn't cheating then but was not being open about what she did during the days).
Cheating is cruelty, it is abuse, your wife is being cruel and abusive.
she told me she needed to find out why she felt this away about another man, so the calling/texting went on for another day
This is abusive, this is not love, it is not kind, it is cruelty.
Good luck.