For turbo use the tyres flex a lot more than on road use in order to deform to the shape of the contact patch with the roller. Road tyres with extra puncture protection layers in the contact zone tend to be less compliant and require higher force to persuade them to deform around the roller, this can kill the turbo bearings and causes more sidewall movement in the tyre, which doesn't do the sidewalls or the rim any favours.
Heavily treaded tyres can be horrendous for noise, but light patterns (eg herringbone) aren't a problem. A cheap road tyre with no puncture protection and soft compound would do the job though. Normally best to run the largest tyre size which will fit in the frame clearances and suits the rim width.
That tyre is delaminating - the layers are peeling apart. I have had a few road tyres fail that way, the sidewalls do not explode but the tread area will separate.
I have had a few tyres fail at the bead - one model of tyre didn't get on with the rims on one bike, the tyres protective wrap over the bead didn't extend as far as the rim contact point, those sidewalls did explode!