I thought it was heat from the HID bulb causing the paint to bubble, but he also tested it today and confirmed heat wasn't an issue from the bulbs.
Attached are some pictures with and without flash. The projected light is from the ceiling light in the garage. You can see the area where there's always light projected to the damaged surface from above.
The CinCity headlights had it bad. That section was warped and the paint pretty much cooked and cracked. The new ones will probably end up the same, so in a few years I may redo the design and leave this area unpainted.
Flash
No Flash (Observe the ceiling light cast to the damage location)
Another angle without flash showing the paint bubbling