Good to know you have been feeling better this past week. It's cheering when we can find a way to manage our particular difficulties or at least make a start.
A couple of comments. Nothing is silly in life. If you are caught up in a thought or action it's because that thought or action has some meaning for you. It may be good or bad or anywhere in between but it is part of you. I agree that being busy can help to get out of a way of thinking. And as a reward we can feel good about accomplishing something else.
I used to see a psychiatrist who frequently fell asleep when I was talking. At first I thought he was unwell and got concerned but when I mentioned it to his secretary she said "Oh no, not again. I'll speak to his wife". It seems this was a frequent occurrence. I was quite annoyed as I was paying him to sleep. I told him eventually how it made me feel, ignored, worthless, of no interest, just a way for him to get a living.
I also told him if he did it again I would leave and not return. It cost me a lot financially to see him and his habit of being late even for his first appointment in the morning which was with me, caused me all sorts of difficulty going to work. In all it was a difficult period made worse because I was so unwell I saw him twice a week.
So I agree with you about your counsellor. At the very least it's rude and more importantly makes you feel worthless. I'm not surprised you found counselling unhelpful. Did you mention this to your GP? If you decide to try again I think he should know and make sure he refers you to someone more professional and helpful. Talk to him about going on a mental health plan and seeing a psychologist. I gather your GP has ruled out physical causes of your sleeplessness which is a good start.
There is a great deal written about Mindfulness and the ability to be where we are rather than thinking about where we are going, and making each moment an essential part of your life. I receive an email regularly from someone who runs a philosophy class in the UK. I had one this morning where the person was talking about being in the moment. I would like to quote a huge chunk but you can breathe again, I will just use a couple of lines.
Rise to the occasion at the time the occasion
rises. Don't dismiss anything as mundane.
I hope you continue to feel well and thank you for your good wishes.