We analyze the topological deformations of the ground state manifold of a quantum spin-1/2 in a magnetic field H = H(sin theta cos phi, sin theta sin phi cos theta) induced by a coupling to an ohmic quantum dissipative environment at zero temperature. From Bethe ansatz results and a variational approach, we confirm that the Chern number associated with the geometry of the reduced spin ground state manifold is preserved in the delocalized phase for alpha < 1. We report a divergence of the Berry curvature at alpha(c) = 1 for magnetic fields aligned along the equator theta = pi/2. This divergence is caused by the complete quenching of the transverse magnetic field by the bath associated with a gap closing that occurs at the localization Kosterlitz-Thouless quantum phase transition in this model. Recent experiments in quantum circuits have engineered nonequilibrium protocols to access topological properties from a measurement of a dynamical Chern number defined via the out-of-equilibrium spin expectation values. Applying a numerically exact stochastic Schrodinger approach we find that, for a fixed field sweep velocity theta(t) = vt, the bath induces a crossover from ( quasi) adiabatic to nonadiabatic dynamical behavior when the spin bath coupling a increases. We also investigate the particular regime H/omega(c) << v/H << 1 with large bath cutoff frequency.c, where the dynamical Chern number vanishes already at alpha = 1/2. In this regime, the mapping to an interacting resonance level model enables us to analytically describe the behavior of the dynamical Chern number in the vicinity of alpha = 1/2. We further provide an intuitive physical explanation of the bath-induced breakdown of adiabaticity in analogy to the Faraday effect in electromagnetism. We demonstrate that the driving of the spin leads to the production of a large number of bosonic excitations in the bath, which strongly affect the spin dynamics. Finally, we quantify the spin-bath entanglement and formulate an analogy with an effective model at thermal equilibrium.