I'm putting primer over paint to re-paint the room and in certain area the paint is peelling what do I do??

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It looks like the primer has something in it that is making the old paint loosen and bubble. I doubt if the primer itself is bubbling.

I don't think primer put over any old finish does any good. It is designed to bond the paint to what you are painting (drywall, wood etc.).

I think I would wash the area with TSP (available at paint stores) to clean the oil and grime off the old paint, and then just paint the wall with the new paint. May want to try a test patch and see if it bonds good

Good luck

Roger

What kind of primer are you using? Could there be silicone where its bubbling?