The fact that she still lives with the ex-fiance is fucked up, and should've made you put the force field up. If they own the place together, it may be something that she can't avoid or get out of financially, but if they're renting it together and she's still there, there's something else going on.
However, it's obvious (and by your own admission) that you have feelings for her so you're stuck. Either talk to her about how you feel or stay in the friend zone, tough call.
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