I agree. Especially when the boss starts talking about "trust" and not listening to your proposals. Getting blamed for other people's decisions when you've already warned about the consequences is a flag that you've already lost the battle. Some people just can't be reasoned with.
Granted, saying leave is easy to do but the OP might not be able to due to their financial situation or other circumstances. So maybe leaving is not the right option but I don't believe this relationship can be salvaged so checking out(either mentally or physically) is the only way forward, as I see it.