I've had tires which release loose strings along the bead, but never up at the tread/sidewall interface - doesn't mean it doesn't happen for others...
I've run Contis for many decades - not the only brand, but likely the most used brand - GP 4000s for a very long time. Rare issues with construction.
If I was the OP,
I would contact Conti, and send then the images, and then consider from their reply.
same would go for any possible 'equipment' failure of a known company/origin.
Ride On
Yuri