No, it is never procedure for a nurse to fondle a patient. They may need to hold your penis to place the tube, but not fondle it.
Commenting on the size of it is also highly inappropriate.
I could tell she was overstepping things a bit , but I actually enjoyed the attention she gave it , especially when she pulled the foreskin tight back and said how huge I was she smiled and got on with the catheterisation then but still holding tight and moving her hand back and forth , I must say this tho she took the stress of being catheterised away , I had no complaint with her tho she was a good nurse dealing with my problem and made me feel at ease. I.was embarressed tho when I became erect very suddenly , she said its ok , it makes my job easier .. might she intentionally made me erect to get the tube in. perhaps that was her reason for working it to get erect?