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Talked to a local car upholstery guy, he said the issue is the leather that Ford uses is surface dyed. So the color of the leather is just on top, not all the way through, and what is happing is the dye is just flaking off like paint. He said use some Lexol conditioner on it, which should hopefully slow it down, but nothing will stop it. Meaning it won't fix the areas that are cracked.
He gave me an estimate of like $400 just to replace the seat (not back) section of my driver's seat. He can source vat dyed leather which will prevent the issues we are having. A big expense is adding the holes for the A/C seats - that adds like $80 to the labor.
2011 F-350 CCLB SRW King Ranch 4x4