Indian MIL adamant being with us during birth. she is toxic

I am residing in USA and my due date is soon and me and my husband have decided from the beginning that I will be asking my parents to come cover to stay with us for 6 months. My MIL has typical traditional mindsight about rituals where she is not ready to budge on anything. I find it toxic living with her even for a few days as there have been incidents in the past where if We didn't do something according to her wish, she would start shouting saying nasty stuff like "consider me dead for you". I am fine ignoring her and not even talking to her for the rest of my life but in some ways it impacts my husband. Lately we told her that I will be asking my parents to help me during the time of birth and again she started a big uproar about it. According to her only paternal grandparents deserve to hold the grandchild first and she started crying saying stuff like " You give me no value", "consider me dead". She called again after 2 days asking questions "what is the problem with me, why you don't want me" we rried explaininh her that we have limited space in our house and I would be more comfortable with my parents. She started crying cursing us specially my husband, telling him that he is a useless son. Now with this attitude, I do not even want to be around her for a minute, not now, not later. She clearly doesn't respect the boundaries. This gave me too much anxiety yesterday night and I couldn't sleep. I am worried if this may impact my baby. Also I do not want her toxic nature to affect my baby's life. Not sure how to handle all this.