This artist's attitude is absolutely unacceptable. I don't know what they were thinking when you asked for something SFW and they thought it would be okay to draw your character with no damn pants in a clearly suggestive pose. If a client wanted something suggestive, they sure as heck wouldn't say 'SFW'.
Not to mention if they thought drawing Warden was so 'unbearable' why didn't they ask to draw something else in the first place? It seems they were just making excuses and changing details to their liking as if the image was for them and not someone else, and then got mad you didn't share the same tastes.
Even going as far as to hammer in, repeatedly, what they think your sona is, is just... yikes. Beware well warranted. I sure as heck wouldn't want to commission this artist ever.
All around, this one just made my skin crawl I had to comment on it. I'm so sorry you had to deal with this, OP. I hope you're able to get your money back in some way. Not sure about the blanket, though, since you have already sent it off.