VI peels can lead to some very brisk shedding of skin, usually 48 hours after the peel, but can extend to 72 to 96 hours beyond. It's possible that you are having a reaction not to the VI peel, but some of the aftercare products that you're using following the peel. Oftentimes, the preservatives in these creams, including hydrocortisone, can result in a serious allergic reaction with the dermatitis.
It is difficult to determine the cause of your swollen, cracking skin without doing a more formal allergy or patch test. My recommendation would be to please contact the physician who performed the VI peel and discuss treatment options with him or her.