Awkward moments with mother in law... Please help!

I am in quite the conundrum here. Because the state of the world right now, we had to move my mother in law in with us which was fun. It meant having to get used to wearing more clothes than we normally do just around the house and also just learn to do exist with someone else in the house than just me and the wife. It was quite the adjustment, but we've made it.

It's about 4 months into this new way of living and I am getting signals either crossed or something that isn't so crossed with my mother in law. I didn't really pick up on it at first until recently. My wife works in her office in the morning and I am usually working in the living room or kitchen as those are my preferred spaces to work.

The mother in law would come hang out with me in the living room most of the morning as of late. Either watching TV, cooking, or doing some cleaning. She has been coming out dressed in a very "comfortable" state. A long t shirt with just panties underneath. I didn't really notice it at first until recently when it's been a lot more obvious.

She bends over right in front of me for extended periods of time showing her panties a lot and she also seems to wear the most low cut shirts and she is pretty top heavy. I didn't notice any of this until it has felt pretty blatant. I am almost positive that she didn't wear panties when she vaccumed yesterday and bent over. I didn't look but you catch things out of the corner of your eye when she's right there sometimes.

I have talked to my wife about it and she swears it's just because her mom is comfortable and that is always what she wore when she is at home. I want her to be comfortable but can't help but feel she is showing off a bit and either getting something out of it or wanting something to happen. Am I crazy? I don't bring it up to her directly because I don't want to make things weird or awkward between us.

I have a pretty good relationship with the mother in law that feels natural and comfortable just not THAT comfortable. I wear a shirt and normal shorts during the day most of the time and really I'm just trying to make sense of all this. Is this normal behavior? I don't feel like it is if she is escalating by bending over now with no panties. I just don't know what to do to not make it awkward.

She is a lovely and nice looking woman and can appreciate that my wife will look similar some day but I don't want to see it from the mother in law. Don't know how to stop it. So far I have been doing my best to ignore it and hoping the behavior will stop. Or maybe it's not behavior and she's just cleaning and comfy and I am the crazy weirdo.