This is very odd - When I duplicate a generic material with a 'Fakes' layer added. It doesn't duplicate the 'Flakes' layer as it is in the right-hand 'Material Editing' panel instead converting it to a layer with an arrow icon asking to select a Material...
It has also placed an expandable arrow on the left-hand 'Materials' panel where you can get to the 'Flakes' settings. However if I select a 'Material' in the 'Flakes' (with arrow icon) section in the 'Material Editing' panel it starts to behave like a wrapper material completely replacing the 'Flakes' layer in the left-hand 'Materials' panel with the material selected...
The 'Flake' settings of the duplicated material when accessed from the left-hand 'Materials' panel are also connected globally to the original material 'Flakes' layer...
It has also placed an expandable arrow on the left-hand 'Materials' panel where you can get to the 'Flakes' settings. However if I select a 'Material' in the 'Flakes' (with arrow icon) section in the 'Material Editing' panel it starts to behave like a wrapper material completely replacing the 'Flakes' layer in the left-hand 'Materials' panel with the material selected...
The 'Flake' settings of the duplicated material when accessed from the left-hand 'Materials' panel are also connected globally to the original material 'Flakes' layer...