Skin got better and then started getting worse?

I've been using for two months now. The first month and a half was incredible! I saw amazing results very fast. In the last few weeks I've been having red bumps (not pimples, no pain, more like a rash with no itching) and peeling. I have been peeling since starting, not shocked by that continuing, but why would I be getting a rash type breakout? It's on my nose and cheeks next to my nose and on/around my glabella.

I use .05 one night on, two nights off. I put it directly on the skin and use tatcha dewy moisturizer as my top layer because it is incredibly moisturizing and long lasting. I am lightly exfoliating once a week and using an oil based cleanser the rest of the week bc it's gentle and doesn't dry me out. I'm keeping my face protected and moisturized on off days as well.

Could this be a late start on my purge? Since I had such good luck in the beginning I thought I was going to be lucky and not have one lol! Has this happened to anyone else? Or is there something I am doing wrong? Should I use a different moisturizer? I used the dewy bc I had it available and it didn't have any active retinoids in the cream.

And please, just tell me if I'm overanalyzing/overreacting to the process lol! This is my first time using it and I don't have anyone to talk to about it. Thanks for your time and help ❤️