Does this actually have anything to do with tubeless?
The tyre had been punctured and had spat out a bit of sealant. I topped up the sealant and went for a ride. I think what happened was that the sealant blocked the exit hole, but the air got between the tread and the tyre carcass. This caused the tread to separate. Wouldn’t have happened with a tube. It finally went off with a nice bang as I was taking a nap and woke me up.
This is the hole that blew out in the tyre. Most fascinating exploding tyre I’ve ever seen. The pictures at the top are of two different places on the tyre. I got back from a ride and left the bike to dry off while I had a coffee. When I went to put it away, I noticed the rear tyre bulging in one spot (the top picture). I turned the back wheel to get some light to take a photo and then saw the big blister in a different place (the second picture). That blister wouldn’t have survived any riding, so it was literally blowing itself apart as I watched. Air from inside the tyre seemed to be seeping into the tyre carcass and getting trapped under the tread, so the tread was blistering all over the place. I was a bit sleepy after my morning ride so I took a quick nap, only to be woken by the tyre exploding. Very disappointing, I’d just managed to wear it down to that sweet spot where it’s nearly as fast as a slick.