First time coming across this type of sheathing. It has a paper face on the attic side and it has peeled alot. No major damage. Just wanted to know if it was safe sheathing. Also, the attic is completely open to the garage. I always report this as a no-no as there should be fireblock between the attic and the garage. Is this right? Thanks guys.

From what I can see it is delaminating substantially and the attic/garage should have a fire wall separation…refer them out for repairs as needed to maintain structural integrity and for safety.