Dupras,

Dipping the Host in the Precious Blood (which is no longer wine at this point because of the doctrine of Transubstantiation) is called Intinction and is an option a priest has for distributing Holy Communion.

This is a custom in some Episcopalian parishes and in Eastern Rites, including Eastern Catholics. So, there is no issue with the way she receives Communion.

If his wife is coming up to the altar itself, I am not sure if this is illicit, but it does have bad optics, for sure, and is contrary to custom.

Depending on when and how it happens, it could possibly be illicit; if, for example, she comes up at the same time he receives Communion, and not immediately before everyone else receives Communion because this time is reserved for priest concelebrants to receive Communion.