Marriage problems with parents and wife

As-Salaam-Alaikum, I am writing to you to ask for advice in a personal matter. I have been married for 1 year and live in a shared accommodation with my mother, step-father, and sister. My wife is not happy with the living arrangement due to multiple reasons. We live in an apartment however since there are only 2 washrooms she has to share it with my sister, and the washroom is inconveniently located outside the bedroom. My parents have always had certain rules regarding my sister and they try to apply the same to my wife i.e. not going out alone, coming home early e.t.c. It also affects our intimacy since the rooms are very close. She is not happy with their interference in our life. On the other hand, I have tried to have a conversation with my parents regarding me moving out and everytime it has turned out to be really bad as they both take it very emotionally and get sick. They have told me that if I leave the house for a separate accommodation with my wife they will essentially end their relationship with me and I would not be allowed to see them again. They say that we have invested all our life in you and now it's your time to give back. I've tried to convey to them multiple times that I will still keep all my responsibilities as a son even if I move out but they don't seem to agree on this. When I quote Islam and scholars, they tell me that I shouldn't pick and choose between what I want to follow from religion and what not. I am really stuck in a very difficult situation as on one side my wife is really not happy with the living arrangement, and on the other side I fear Allah that if I leave without my parents blessings it would not be good for us. My mother has made a lot of sacrifices for me, countless, so is it selfish of me to be thinking of my wife? When I last talked to my mother about moving out, she got really sick, and she didn’t eat, and she kept crying for a long time. She told me a mother doesn’t wish bad for her children but her tears are not good if the child is the cause of that. I need your advice regarding what to do in this situation, I.e. how to deal with it such that I can balance both ends.