I've heard some dumb and sick shit in my day, but this takes the damn cake! Seeing Black people would traumatize the baby? Jesus, what happened when the poor child looked into a mirror for the first time? Kid must have freaked out. I call BS on the therapist endorsing this; any competent therapist wouldn't.
You have her pegged correctly. This woman is a racist that adopted an African baby to assuage her own issues and to prop herself up. She can trot the child out and bask in all the oohs and ahhs and feel like such a humanitarian for saving a "poor, pathetic African child." Meanwhile, she's trying to whitewash him.
He'll be traumatized alright, by her. I can only imagine the identity crisis and confusion the poor young man suffers as a result of her actions.