My interpretation: the round piece of bloody flesh represents her erotic interest in you (which you may think of as having something to do with making babies, and hence the pseudo-birth it undergoes). On the one hand, you find it utterly repellent; on the other hand, you know that, like a vital organ, it keeps her "alive" to you, together with you, and you are very scared that your relationship with her will die. Right now, with her ban on your boy thoughts, she has indeed thrown this sphere of meat into your face. And she has indeed challenged you to re-insert this vital thing correctly into her or she will expire to you in some way.

The shock has sent you right back to age where your sexual orientation began. We think of sexuality as being adult and un-innocent but in fact it represents the deepest needs of a child in us. That child in you, when his vulnerabilities are laid bare in a dream, is screaming.

Lord Jesus, please lay your healing hands on Cat and his wife, so that they can find some way through this terrible crisis.