Did he just break up with me?

I (35F) started dating this guy (36M) early April. We see each other once a week because that’s all our schedules allow, except for the off chance we both don’t have our kids on the weekend. That’s only happened twice. We became intimate in June and that’s when he asked for me to be his girlfriend (although we had had the exclusive talk a few weeks prior).
Things had been going great up until 2 weeks ago, when I sensed a big shift in things.
Now, I’m not a big texter, and I have a very busy job, and young kids, and so does he. But we always found a few minutes each day to text to say good morning / good night, ask about each others days, share silly stories, etc. And usually once or twice a week we’d talk on the phone to catch up in a meaningful way, outside of our one date night a week.
Then two weeks ago, it changed. I wouldn’t hear from him at all for the whole day, sometimes two. I didn’t blow him up or anything, just sent a message or two to say hope he’s having a great day, good night, casual stuff like usual, but no response even though he’d be online. After a few days of this, I called, no answer, he tried me back hours later and I missed it, tried calling back and nothing for another day.
When we finally talked I asked if he’s ok, and he said he just needed to “disconnect” and “not be on his phone”. He got some disappointing news from his attorney (ex wife was taking him to court for more money etc. he hasn’t gone into detail about it with me, just that it wasn’t good) and he’s been stressed at work (transitioning stuff). I was understanding, but said I was concerned that my attempts at communicating were being ignored and I felt like a nag (which I’m not) and he said it had nothing to do with me and he’s sorry that I felt that way. The whole conversation went respectfully well and I thought we understood each other. The days that followed were much of the same, barely heard from him, maybe once every couple days. I would only message once and if he didn’t reply, I left it alone til he did, a day or two later.
Well, this weekend was to be one of the rare (3rd) weekends that we both were free. We’ve known about it for over a month, and were excited when initially discussed. Today I messaged to confirm and the following took place:

Me: Hey babe, just wanted to confirm we’re still on for Saturday/Sunday this weekend? 😊
Him: I’m such a mess I completely forgot.
I’ve just been in one giant cloud.
Me: Ok. Does that mean no? Or..?
Him: I have no idea. I’m stretched so thin and am so mentally and physically exhausted.
I like you. I am attracted to you. We have amazing sex.
Idk what’s wrong with me and can’t even to begin to explain how I feel or anything. You have so much to offer and deserve someone that offers the same right back. I don’t want to put you on hold when I don’t know what’s going on with me.
And I know you over think things and all that but I want you to know this truly has nothing to do with you doing anything wrong or not being good enough. You’re more than great. It’s me that needs to figure my head out.
If you still want to hang out while I figure it out that’s cool but if not I completely understand as I don’t want to hold you back or lead you on.

I haven’t responded yet because I don’t know what to say. It seems like he broke up with me? But, also wants to keep me around if I’m willing? Idk. All I know is I really had a great feeling about where we were and the pace we were going, and how he treated me, up until this shift where I felt like he no longer made me any sort of priority (not that I expect to be number one, kids / family / work come first) but it felt like he had zero interest in anything about me or my life because frankly he just stopped asking all together.

Do I give him grace and tell him I understand and still make time for him? Or do I just thank him for his honesty and move on.
Thank you for reading this long post and TIA for any advice.
This sucks.