Man what a drag! It looks like the adhesive in the decal didn't work well with the solvents in the clear. I don't think it would matter how long you waited between applications, since the decal would be exposed to wet clear on the edges when you topcoat. I'm curious what brand the vinyl material was or where you got them (just got into cutting decals for myself with a plotter)?
Looks like a lot of tedious sanding, but maybe once you get through the top coat the decal will just flake right off.
Flake job looks tits, btw.