Flakes on any surface coating is generally from improper prep work, or application of the coating.
If the housing is clean of oil, sand blasted with 100grit aluminum oxide media, and then coated with a thin thermal coat, and not cured at too high or low of a temp, it should not fail, ever.
There are some other issues to keep in mind. IF you used glass bead v/s the aluminum oxide, or touched the housing with oil on your hands, or did not apply the coating right, it could cause problems. (Like putting on too much for example.) If the coating was designed to cure at 400f, and you baked it at 250f, it will not fully cure. Or if you baked it at 500f, it will likely fail. (Even though the final cured temp operation range was 2000f, it has to cure at the right temp, for the right time, or it will not cure, and it might fail.)
So, to answer your question, I've coated many things with various thermal coatings. Some have failed. Most have not. I learned the hard way NOT to use glass bead, ever. Just don't do it. (You need the aluminum oxide to get the right "tooth" on the surface to promote adheasion of the final coating.)
I coated my SS bolt on turbo a few years ago with "black satin" from Techline coatings. Did it exactly like they said. It has been flawless. And it stops heat very well I think.
I've also since used the same coating over a glass bead surface, and it has flaked off. (Damn glass bead.)