If nothing is done against the rising moisture, the new paint will look the same again after a short time.
The recognizable attempt at repair of the constantly peeling base by simply applying an extremely thick layer of (estimated) restoration plaster only made things worse, because the moisture now rises behind it and causes the paint above the base to peel off. So: chisel off the base, dry it out, then plaster everything. Ideally, leave the lowest strip from the base down to the masonry exposed, so everything there can always dry out and nothing else will fall off the rest of the wall.