Do I Need to "Break Up" With My Sister-in-Law?

My wife and I have been together for 4 years and she's the best person in the world. Her sister however drives me friggin insane.

They've always been super close and their relationship is very important to my wife. I don't want to impact anything in their dynamic but I'm no longer wanting to spend time with my SIL really at all. The four of us (including SIL's spouse) have been trying to make friendships work the last few years and there's been an unusual amount of conflict and blowups, this isn't by any means normal for me but I didn't realize how bad it was until I was away visiting my family and had some perspective.

At this point I've realized I just DON'T want to be around SIL and I just don't like her. We're all tangled up together so I only see 2 real options here; "ghost" SIL and just fade away while remaining cordial and avoiding conflict, or to tell her why I'm suddenly not spending time with them anymore. We have a history of fights and them talking in circles, escalating, having emotional reactions, etc and since this is a family thing I don't want to burn bridges.

What would you do?