Fingers x for sleep and no major destruction!
Desensitizing is a tricky old business, you have to work close to, but under threshold and as the subject cannot tell you if you are close to yet still under threshold you just have to watch for the 'fall out' - and sometimes its as obvious as the nose on your face and you can stop, re-think, tweak what you're doing and start over...
And sometimes it is subtle and sneaky and trips you up when you weren't expecting it.. and i suspect that is what has happened here.
Hopefully, a break with no 'crate pressure' and some more 'crate is SUPER lovely' business and you will be able to use the crate again IF you need to, and he'll continue to sleep loose in the kitchen at night from here on out....
FWIW, I start DS to alone time in seconds, sometimes not even that, sometimes its in and out the door.. for some dogs, its shifting your weight forward on the sofa as if you were going to stand up, then not standing up!
Unfortunately we have to guess the start point for any dog we're working with, and we have to play a balancing act of 'cautious and careful' and 'but the job does need doing'... and it is inevitable when one party is having to guess what the other is experiencing, that the Fuck Up Fairy will visit us one day.
This is not a massive error, it absolutely can be fixed, you're learning to do a very very tricky job whilst doing that very very tricky job and I think you're doing a damn fine job... as you were, keep trundling onwards!