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i couldnt find anything on the issue but my headlights look like they are peeling and im not sure what it is or from has anyone had this issue or know anything about it?
I'm assuming it's the outer coating of the clear lens. Common problem to cars with plastic headlights lenses, the UV from the sun causes the outer plastic layer to break down. Nothing a headlights detail can't fix. Try a product like Meguires PlasticX first. If it is still flaky, you will have to wetsand it off and follow up the PlasticX. In the detail section, there are threads on how to fix these common headlights issues.
If your headlight housing is peeling out, come to dealer they fix it for free if your car still under warranty. Some member in here have problem with headlight housing peeling.