Something is amiss here! It sounds like you are experiencing fish eye development, which is caused when a contaminant on the surface being coated is actively pushing away the paint or stain, leaving bare spots. As long as the contaminant remains, these bare spots will reappear, regardless of the number of coats applied. Since this our Varathane Stain and Polyurethane is a water-based finish, the contaminant may be an oil or grease residue. To correct this issue, we recommend sanding the bare areas, then cleaning with a degreaser or soap and water to remove the contaminant. Once the surface is clean and dry, the Stain and Polyurethane may be reapplied to the surface. We recommend a minimum of 2-3 coats when applying our Varathane Stain and Polyurethane. The mention of one application on the label is meant to inform our customers that this product is a stain and polyurethane in one, and purchasing stain and polyurethane is not necessary when using this product. We hope that this helps answer your questions and concerns. Please give us a call at 800-901-0411 if you have any questions about the application, we will be happy to help! - Rust-Oleum Product Support 2