I can't really see from your photo, but the white layer appears to simply be white paint, and the tan layer underneath also seems to be just tan paint. This is likely the result of a previous owner applying (white) latex paint over (tan) oil based paint.

The best approach to this is to get most (ideally all) of the peeling white layer off, because what is well adhered for now will eventually peel off. If some areas are really well adhered, you can leave them alone and feather the edges of the paint layers by sanding the top layers until it feels smooth to the touch.

Then apply a good quality bonding primer suitable for application over oil-based paint, followed by the top coat of your choice.

To me, it looks like plaster behind the white, and the white looks too thick to be paint. I am wondering if someone had that wall skim coated for some reason, and then didnt primer it before they painted.

Here’s a close up of the white! Has a powder consistency when scratching it so I assumed it was like a plaster or something they added over?

I agree with cat_ky — that white stuff looks like joint compound. Unprimed. Hopefully it’s all unprimed and you can get it off easily. Test it by seeing if a wet sponge can rub the white stuff off. If so, it’s unprimed joint compound. :p

^^ @cat_ky and @party_music50 Definitely looks like a misguided attempt at skimcoating using the premixed stuff in a bucket. I’ve had success with the same issue using a wall paper steamer and a scraper to remove peeling paint and softened joint compound (put down plenty of plastic). the hardest part is getting to a place to stop!!

Skim coat applied over dusty drywall is my guess. Paint on dusty skimcoat? No primer over skimcoat?

Is that white thing a baseboard? Huge gaps between it & the wall?

Melluvahess you have on your hands.

Lack of attention to details that matter...was this house a flip?

Ugh. Looks like you have two choices, either scrape off what is almost certainly the skim coat with non-setting drywall mud and try again with proper prep, or cover it with thin drywall or blueboard and (real) plaster. If it comes off easily I'd try the former, knowing that is was probably skim coated for a reason and that you will probably need to do some plaster repair.

I'd try puncturing the paint all over, perhaps with a walpaper removing tool, then dampening the wall with a garden sprayer to soften the underlying layer. Much less dust and mess if you can remove it in a wet state. A drywall sanding rig hooked to a vacuum with a good filter might be a useful rentalitem for the project.