It could be an allergy.
Our first Boxer, Rocky, had the crusty, scaly, condition on his nose. We switched to a lamb and rice diet and while it didn't eliminate the problem entirely, it helped reduce the area considerably.
If a dog is allergic to chicken, the "quality" of the food doesn't matter. If it contains chicken, the dog will react to it.
We used vitamin E, and when we were diligent, it would eliminate the remaining small stubborn spot that remained after switching to lamb and rice.
While vitamin E, vaseline, and bag balm all help, I wonder how Chapstick would work? It certainly is more convenient and less messy than any of the others.