I would assume that your father does in fact realize what is "going on" especially from his wife. How could he not?
Why he doesn't react to this ongoing interaction-an interesting question in psychology.
What the solution should involve is - respect to him and what to consider if not effected. Why remain in such an "unhealthy environment"?
No easy answer if continued!
Slapping the "audist label" doesn't solve his problem-at all.
Hopefully a resolution to this "intolerable situation"-soonest!