That is a more interesting conflict than the Davis-Polk one to me, since he likely worked directly with the office handling the case.
Outside of that, he was at Davis since 1999.
There is simply no sane argument that, essentially anyone his quite-large firm worked for (without him even knowing about it), since 1999 should cause his wife to recuse.
It violates no ethical rules, opinions, cases, or what have you. Judges have stricter ones too, and it doesn't violate or even come close to appearing to violate any of them.
It would be laughed out of appeals.
i've not yet seen any convincing argument here.
As such, i maintain she probably did this because she didn't want the case.