What looks like either wall paper, or one layer of plywood that has de-laminated. I know the cause was water. The leak has been fixed and is no longer a problem.
What are my options to fix it. I tried to just spray glue on it, but, either I did it wrong, or it just won't hold.
It doesn't have to be that pretty, but it does need to stop peeling and no longer look peeled.
When I had a water leak, it damaged the luan of the wall. It was "crunchy" if you poked your finger at it.
I used a metal scraper tool to carefully pry/rip off the old luan and then I used contact cement to glue wood paneling in its place. I did the same inside the shower except I used fiberglass paneling there.
1990 Winnebago Warrior. "She may not look like much but she's got it where it counts!"
If it were me I would either remove the luan that is there or cover over the old luan with new. Luan is 1/8 inches thick. If the luan is stapled to the wall use staples to make it adhere. You can then paint or paper with a vinyl type wall covering.
Alfred May 2005 Excursion V10 4.30 4x4 2002 Cedar Creek 30RBS TT by Forest River Reese Dual Cam Tekonsha Prodigy
When I had similar issue I removed the old wallpaper - made sure the area was bone dry and then applied a stain blocker type white paint. I then found new matching wallpaper and applied using std wallpaper paste.