Stained cedar siding can peel due to several factors, including inadequate surface preparation before application, moisture intrusion, and exposure to harsh weather conditions. If the wood is not properly cleaned and dried prior to staining, the finish may not adhere well. Additionally, trapped moisture beneath the stain can cause the finish to lift, leading to peeling. Regular maintenance and proper application techniques are essential to prevent peeling and ensure the longevity of the finish.
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