Clear coat failing on headlights?

That almost looks like the plastic is cracked or shattering. Maybe it will not polish out so I would try a heavy cut compound first and see what gives.
 
Mine looked like this too, I too suspected that the factory coating had begun to fail. I used this 3M kit to restore the lenses and they came out great.

I just followed the instructions in the box, and the video on their website. I just chose to use the CarPro DLux coating I had around instead of the provided 3M sealant in hopes of some more durability. It's been about 9 months and they're still holding up great.

3M Lens Renewal Kit, headlights polish, plastic headlight polish, polish plastic lens, plasic polish scratch remover

CQuartz DLux Plastic & Wheel Coating
 
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