I have a Gucci wallet that has this problem also. Before reading this thread, I tried scraping the interior to remove the flakes but underneath is a very thin layer of cloth. Very disappointing, considering that the interior looked like leather originally, but over time it turns out that it was not leather, but just paint that had leather grain pressed into it.
The wallet was unusable with all the flaking anyway (getting all over everything and sticking to my hands and credit cards, etc.), so scraping it didn't make it any worse, but to make it useable is going to be a process. I'll have to finish scraping (carefully so as not to tear the thin cloth) and then I will use a leather paint to recoat the cloth. If it works, I'll post pictures.
Cross your fingers for me! lol 🤞