I recommend that Marky remains with his parents under the condition that his parents get services. Both of the parents need a psychological assessment. I believe the mother might have undealt trauma from her experience with CPS as a child. Her bipolar disorder needs to be assessed to determine the right medications and treatment. Marky’s father sounds like he may have a gambling problem so he should go to Gambler’s Anonymous. Marky should also get a psychological assessment done because he has endured bullying in school and has also become a “parentified” child. Marky needs an updated IEP so that he can receive the correct resources from school. The family should continue working with the intensive in-home family therapist to address all the housekeeping and hygiene issues.
I would recommend looking into possible relatives that might want to foster Marky as a safety net. I don’t think the maternal grandmother would be a good fit because of her long history with CPS but maybe Marky’s uncle would want to take him in.