Be aware that any polish may dry in small chip craters creating many small white dots.
I've found using a "pad conditioner" and GENTLY going over those kind of chips will remove most, if not all of the leftover polish. Then using a non-whitening 'wax', the chips are pretty well hidden.
Not if it's flaking off. Just take it easy in those areas.
I agree wit the above. If the paint is flaking off around the chipped area, that is you can see the edge of the paint lifting then be careful as your buffing pad could catch the edge of the paint and pull off some paint making the chip bigger.
Other than that I buff right over them, smooth them over and clean both the paint and the chipped area be it basecoat, primer or steel.
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