I agree you need a second psychiatric opinion. It’s very common for anxiety due to psychosis to increase under stress and/or lack of sleep. My symptoms and anxiety are generally at their worst when I’m jet-lagged when traveling in foreign countries where I don’t speak or know the language well. It’s also common to be less than honest about or overestimate your coping skills. Often you are nervous and don’t want to say anything that might make them overprescribe or give you a medication you don’t want.
SSRIs seem a risky suggestion here. Psychotic symptoms are found in a number of SMI— including bipolar and schizoaffective disorders where SSRIs are generally avoided due to the problems you mention— triggering manic states is the chief worry. Benzodiazepines, buspirone and some of the newer neuroleptics are safer choices short-term, although long term benzodiazepine use can cause dependencies. Again, I’d be inclined to think a low dosage of an atypical AP medication might be an option. My father took buspar for years for anxiety, I’m not sure but I’m inclined to think that my brother’s bipolar and my schizoaffective disorders may have influenced that decision.
Another thing to consider is genetic testing. While I think testing capabilities are oversold, sometimes it can narrow down some of the trial and error of prescribing medications.
Don’t be discouraged, it can take a while to find a good psychiatrist. Here’s a link to some of my criteria for choosing psychiatrists, and an account of my first disastrous encounter with one: