My BF is a cuddly man and I’d probably be ok with him cuddling others as long as he still cuddled with me.

But the fact that you had to point out your lack of intimacy with your wife pushes this into cheating territory for me. Cuddling friends INSTEAD of your wife is not ok. Unless your wife is fine with it and you two have a mutual understanding, in which case there’s no problem. Also, how does your friend’s partner feel about it?

In these crazy days when simply having friends of different genders is considered “cheating” you’re probably going to get pushback on this.