When it peels you can usually just stop pulling further, add a new whiff of glue, squeegy it gently (I put a little spit on the top, to make sure the squeegy glides smoothly and doesn't stick to pull it to bits) then heat up again. Yours looks like heated a bit too much, the toner will then melt and everything will start to wrinkle a bit. The best method is, use acetone to degrease the dial blank, then apply the decal with W1 glue as prescribed and heat it up with a heat gun from a distance and then after doing that a few minutes, let it cool down completely. This will usually make it stick really well.
What I then do, to prevent dust is after peeling the film, hold the dial upside down with tweezers on the feet, and use a mini blowtorch to heat the dial from the back a few seconds. Not too long, but you should see a little whiff of vapor coming down from it. Then let it cool long enough for the toner to cure, before flipping it over, as any dust will stick to the molten toner and ruin the looks.
Best also, is to use a cup with a lid for the water that you use to dip the decal in. And then after applying W1 glue (I dip a pair of tweezers in the glue bottle with the tip closed, that will suck up a nice portion of the glue) immediately apply the decal. Be careful not to move it along side sharp edges too much, as it will damage the toner. Then when perfectly aligned, don't be afraid to apply a small drop of spit on top to make the squeegy slide over it smoothly. When squeegeed the decal will already bond pretty well, usually, depending on the surface. A painted surface may stay very slippery, such as the jeans dial, the white matte paint on that was very hard to make the decal bond to. It was also not possible to bake it too much, but just enough to cure the toner.
They do look MUCH better in real life than on pics, this is so true!
Also if you want real mirror polish, you can use an ultra fine sandpaper and then some car polish to make it really smooth. Almost like a MKII Key West gilt dial. Best to use a stacked decal for this though, as it will be a much hticker layer and gives more real estate to polish before stripping it off fully at corners.