Wood, cones and especially the branch tips of thuja are poisonous. The cause of this are essential oils from monoterpenes. Appropriate caution should be exercised during cutting; the cut material should be disposed of (landfill, organic waste bin).
Of course, one does not eat thuja or rub oneself intensively on the foliage etc. (whatever absurd idea might occur to people).
Simply standing nearby or just the presence of a thuja will never lead to poisoning, not even gradually.
Whether the concerns of the mother-in-law can be met with arguments cannot be judged from a distance. There are people who already have an opinion and are immune to facts .