Can My Child's Grandmother Seek Custody of My Child

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Quoting Neokenshin

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Everything is in my and my wife's name. The lease on the house, the cars, utilities. Basically it was the four of us before she moved in 2.5 years ago. The only good thing that did come from her was that she forced counseling on me that ended up turning into counseling for my wife and I because my wife has Insurance and I don't.

my MIL says she plans to move out when everything is good in our household, but honestly I feel like they won't get better until she does leave. It's like a bad paradox that I don't know how to get out of.

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You need to evict your MIL and other in laws. It's that simple. She's never going to move out on her own. So you need to talk to your wife and if you need to, talk to a lawyer. Kick her out.