Question: Are there any specifications referencing Polyphenylene Sulfide (PPS) film capacitors and horizontal lifts on sides (or cracks) when heated like ceramic chips if cracked horizontal, or is it considered a defect for all three classes?
Answer: These components are not necessarily hermetically sealed as the traditional ceramic components. I checked various web sites on PPS film capacitors and none provide any information on mechanical damage to or on the body of the component. I recommend contacting the manufacturer directly and getting the information from them as to the allowable damage that can occur to the component without removing and replacing the device.
Without having any additional information I would reject the condition based upon it being a damaged component as defined in IPC-A-610.