There’s not enough information in this article to determine exactly what was said to this confused person and the “wife”.
An embrace (a physical hug) is not the same thing as saying “way to go, now your marriage is valid”. Francis, being the “pastor” that he is and has carried over into his pontificate is surely going to embrace this poor soul along with any hurting soul. But this isn’t the same thing as approving of the sin.
And just because “he” said “I’m at peace now” doesn’t mean anything either. Maybe “he” actually had a good Confession with the Pope and realizes the error of “his” ways.
We just don’t know what was said. I’m no great fan of him anymore but I’m definitely going to wait until and unless he publicly says gay “marriage” is ok and/or gender reassignment surgery is “ok”. It literally must be that blunt for me to be concerned about the Papacy and the Church.
The Church has endured the likes of Borgia Popes in the past. I think she can endure a 21st century feel-good Jesuit.
But, and it's a big but, one key responsibility of any leader of anything is to make sure he doesn't look foolish, and by extrapolation, to make sure his followers don't look foolish.
This looks, IMNVHO, very foolish. It also reeks of unprofessionalism. This would, or might have been, a commendable private interaction, followed by a public "teaching moment," to answer the questions I and many others might have about it.
The Borgia Popes would have handled it in a much better manner.
Then why would he still be planning to have a family with his "wife"?