I clicked on this thread simply because a friend had posted here that I've not talked to in awhile...
To my amazement the problems on that hood looked/look...(I'll explain that in a moment)...just like the hood on my Trashed Trailblazer before I compounded/polished it.
I had talked with TuscaroraDave (a member here) about this problem and had sent him some pictures via email. He said the problem looked like what is called clear coat fracturing...those lines that resemble sanding marks. He said that if indeed it was clear coat that the issue would indeed return.
Now let's talk about the cloudiness that surrounds that clear coat fracturing...
I believe some of that cloudiness is oxidation. However, it can be removed, but only temporarily. I've learned this from experience in the same location on my Trailblazer hood. You can remove it, but it will return because the top layer protection has already been compromised.
Someone explained to me before starting on my Trailblazer that the upper level of UV, or Ultra Violet protection, had been compromised. The paint on your VW hood exactly replicate the issues on mine, and your vehicle appears to be black...just like my Trashed Trailblazer...a color (Black is not a color, but a full time job -Mike Phillips) that shows defects perfectly.
Here's what I did on the Trashed Trailblazer project...
I went through the entire gammut. I washed, clayed, taped off, compounded with Meguiar's M105 with a wool pad on a rotary, then used M105 with a foam pad on a Dual Action polisher, and finally used M205 with foam on a DA. I even performed a triple alchohol wipe down on the hood to ensure that all the oils were removed so that I could properly inspect the paint. All oil was removed, the paint looked brand new, and Poli-seal was applied which was another recommendation of TuscaroraDave. Dave said that if those striations returned, and had I used a wax to seal the paint, then I'd end up with white lines on the hood that would look very similar to what you see in your photo, only worse with wax imbedded deeply.
Long story short...
It's been a year since I performed all that paint work (more than 60 hours...22 on the roof alone, and approximately 6 hours on the hood alone) and I can tell you that after I finished it looked brand new for awhile, but the defects did indeed return just like I was told. The lines, and that cloudiness that you see in your photo returned. The strange thing is that it's in the same place on your hood as it was on my hood. I wonder if engine heat combined with the sun and bad paint caused this?
This leads me to the conclusion that TuscaroraDave was spot on correct when he said those lines were clear coat fracturing and that they indeed would again rear their ugly head.
I am also confident that the person who told me the cloudiness was a result of upper level UV clear coat failure was again indeed correct.
TuscaroraDave originally said for me to seal the paint with Optimum Opti-coat. The thought process was that this coating being more permanent would keep the vehicle looking better while adding UV protection that was needed. As a second option TDave suggested the Optimum Opti-seal.
Seeing that Optimum Opti-Seal was the cheaper of the two suggestions I elected to go that route first as an experiment to see if the defects would return.
At this point, since ALL the same similar defects as your photo returned on my vehicle, I now think that applying the Opti-Coat coating is the only option left...and I honestly feel that it too will only be temporary. It might last a few months than the opti-seal, but I highly doubt it...even though I know that the coating is a much better, and more permanent product. I just don't think that the coating alone has enough UV protectors in to allow the paint to NOT return to its previous ugly, defected state. Rest assured though, I do plan on trying the coating simply because I can't afford to repaint the Trailblazer at this point, so the coating will get tested and at some point I post the results here.
If that Passat was mine, and I could afford it, I'd forgo all the work I've done and go straight to a repaint.