I agree, the non-stick coating is not very thick or durable, and the more it sticks, the harder I need to scrub to get it clean.
My solution is to buy pre-cut parchment paper rounds the right size for my air fryer, with holes punched in them. They're meant for steaming, I think, but they do a fabulous job of keeping the basket intact and they don't block the air flow because of the perforations. I think I got this idea from someone else on one of these boards--not sure. Foods that release water or grease still get the air fryer dirty, but nothing sticks to the parchment paper, so it's really easy to clean.
It might also prolong the life of your air fryer now that it's already peeling. It shouldn't do that, of course, but it probably isn't actually defective--just bargain priced quality.