I had that EXACT same thing happen to me!! The outside rubber was all dried out and cracking off. We discovered it when we were replacing my tires. I considered it a warranty issue but Zero disagreed so I had to get a new belt out of my own pocket. I've NEVER had to replace a belt on a motorcycle before. Mine had less than 10,000 miles on it and that's just WRONG. I posted a similar photo here when it happened.
For reference, I've owned four bikes previously with belt drives and when I got rid of them they all had their original belts in EXCELLENT condition:
2000 Buell M2 Cyclone: 38,345
2006 Buell XB12Ss: 25,876
2009 Buell 1125R: 18.884
2016 Zero S: 17,897
You'll note that last bike was a Zero, and it had the thinner belt that was replaced with the supposedly BETTER one that failed on me in a little more than half the mileage I had on the older design.