The VK-1 or MCH-53 Lacquer (its a manufactured chemical similar to cellulose varnish, not a shellac made from bug secretions...Shellac stopped being used on rifle stocks in 1940) used during Soviet Post-War refurbishment was applied over at least two different coatings that were there to protect the wood from moisture ingress...
Flaky finish on postwar refurbished rifles is the result of application issues during the refurbishment process, or use of old out of date VK-1 lacquer.
Feel free to let the finish flake off - the wood underneath shouldn't be affected.
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