Hi, I can understand your concern for sores and flakes on scalp and hairline. There can be multiple possibilities of the sores and it requires a close physical examination to diagnose the exact entity of the problem. In my view correlating with the facts you have provided it appears to be allergic dermatitis due to dye. I suggest you to meet a dermatologist to for proper therapy. In between you should avoid contact of dust to the area properly. If I were your dermatologist then presumptively would have preferred to apply fluticasone with mupirocin cream. You can take an antihistamine such as loratadine for twice a day if itching is present. Do not try to pinch, pop or squeeze the area as it may cause secondary infection of the area. All the best