It’s spackle over wall paper. Of course it’s cracking. All of that has to come off. As in the wallpaper has to get stripped. Whole bathroom. That’s too much work with all the garbage over it. It’s far easier to just remove the drywall and start over.

Unfortunately we can't remove and replace all the drywall. We'd never be able to tape and float where the replacement drywall would meet the shower tile.

As for spackle, they used drywall mud and not spackle.

We did try removing the painted wallpaper in the hall restroom and it tore off the drywall paper, so they still had to mud it.

Yes, you can do the job the right way. Or you can not do it the right way, and deal with patches and patches and patches until you’re so frustrated that you end up doing the job right. It’s always better to do it right first.

thanks. I do understand that. but how would I close the gap where the new drywall would butt against the backer board behind the shower tile?

If you dont want to remove the drywall, then the alternative is to remove everything else, including the wallpaper. Hard to believe that any contractor would mud the walls over wallpaper, without removing the paper first. It will just keep cracking if you dont get the wallpaper removed. If you decide to remove the drywall (easiest), then please find someone to install the new, that actually knows how to butt it up to the backer board, and does it right.

Removing the drywall is way easier than stripping off everything to bare walls below the wallpaper. Way easier.

I have no problem removing drywall. I just want to know how to close the gap where the shower tile is. obviously you can't tape and float that joint

I can post this evening