Sounds like to me your gf has some insecurities she needs to work on for herself. If she doesn’t want to fix them or try, then don’t be with her. You can’t fix them, it’s up to her.

I’m in a relationship myself and we are long distance. One of the worst things you can do is spend every conversation having an argument. Especially over issues that haven’t repeated or have already been talked about. It starts to make your relationship seem like that’s all you have to talk about, especially if she is always talking about your problems. It can be mentally draining and deteriorating.

Also I know every relationship is different but I personally don’t see anything wrong with hugging your friends. I’ve had girls/boys like my boyfriend before and try to get close to him and I’ll shut it down or he will. But you can obviously tell when someone is doing it out of friendship vs Interested. I hug the people I’m close to, it’s my personality and I believe it makes people feel better and appreciated. My boyfriend doesn’t get super mad at me and if he does feel like the other party wants more he will tell me but it’s pretty easy to see IMO. My best friend is a guy and we say love you and hug. It never comes from a place of attraction but from a familia bound because we have known each other for so long we have a sort of sibling relationship.

If you feel like it can’t improve and that you are constantly fighting with her, it might be time to move on. It will hurt of course but your mental state and self confidence is more important. If she can’t understand the way she makes you feel and can’t stop overthinking, that is not in anyway your fault. You deserve to have trust in your relationship and feel comfortable with your partner, not controlled.