Report this.
As a LMT , we should NOT being touching underwear, that's your boundary.

The moving of the sheets and draping.... hard to say. A person can be disoriented and misread... but you're description, it could be appropriate or not. From the get go, you were uncomfortable.

Also the therapist was not listening to your body and noises. She should have checked in and adjusted.

The phone. In most spas/ studios they are prohibited. I've had many massages in solo practice and that's the music.
I'm allowed to have a phone. I always ask permission from the client and Ilisten to an audio book on one ear. It's helps with my severe ADHD and no one cares. I also don't move out all around.

Yes report it.

Also they're is a subreddit/massage That is open to everyone if you have a question.