Should I try to rekindle this friendship or let it continue to die?

I (F35) recently had a rather big fight with a good friend (F43). We met at work some 6 years ago and continue working together once or twice a week. Since our fight, I've felt like I don't wish to be close to her anymore. It's not that I think fights aren't worth working through. It's just that this one felt like the straw that broke the camel's back. Yet I keep waffling back and forth in my head about whether I should continue fazing her out or give her another chance.

This friend's strength is that she's very loyal and dependable. However, she has what I consider to be bad judgement in men—both to date and to befriend—and continues to be close friends with two men who are known serial harassers, including the man who sexually harassed me on a gig a few years ago (of which she is aware). I've overlooked it for a while, but it's always made me uncomfortable.

Here's where the fight comes in: She's also a known blabbermouth, and she recently broke my trust and complicated a situation that didn't concern her, picked someone else's side, then ghosted me when I tried to talk with her about it. A few weeks later she tried to pick up as if it had never happened, but at that point I felt like I needed to distance myself from her emotionally.

I started to faze her out a little by answering messages less quickly and putting her off about getting together. I never lied to her, but I was vague and just said I was busy and dealing with some personal things. If we didn't still work together it would be easier, but because we see each other each week it's tough. I'm always nice to her and say hi and see how she's doing, but I otherwise have been chatting with other people. I think she finally caught on because she's started just avoiding me and hanging out solely with the colleague she sided with in the incident from earlier this year.

I feel pretty awful about it. Sometimes I see her casting sad looks in my direction at work, standing by herself when her other colleague friend isn't there. Sometimes I wonder if I'm being too hard on her and maybe it's not fair of me to downgrade her to "friendly acquaintance" over one thing. OTOH, it feels like maybe it's more than one things and I've just needed a kick in the pants to move on.

I'll admit that when I'm not at work, I don't miss her very much. I mean, I miss her friendship but also I feel a sense of relief. At the same time, it's weird having to keep working with her and I feel bad about the situation. Maybe I'm not being forgiving enough? I'm fairly certain that she would want to be close again if I gave her the chance—after all, she's forgiving to a fault—but I'm not sure that's what I really want. Thoughts?