White, Dry, Flaky Layer at PD Exit Site (No Redness)

My father is on peritoneal dialysis, and I perform his exit site dressing on alternate days. Recently, I noticed a white, skin-like layer forming after his bath, particularly in a small, pocket-like space to the right of the catheter. I clean this area with Betadine 10% solution and apply Mupirocin 2% ointment.

Initially, we thought it might be leftover ointment. To prevent the area from getting wet, we have stopped giving him baths for the past five days. However, I’ve switched to daily dressing with Mupirocin, applying only Mupirocin at night. Now, I see a white, dry, flaky layer forming the day after cleaning, which easily comes off during the next cleaning. There’s no redness, itching, or other symptoms.

Could this be normal, or might it indicate an issue?
Not sure if its coming from exit site tunnel, please suggest.

white, dry, flaky layer formation on next day