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For the most part, peel-and-stick wallpaper doesn't damage walls. However, there may be some cases when damage does occur. For example, if you try to rip the paper off the wall, you may pull away some paint at the same time.

The walls can also be damaged if they aren't prepared properly before you add the wallpaper. For example, if the coat of paint is too fresh when you put the wallpaper on the walls, it can peel away as you remove the paper. 

If you need a stronger magnetic surface, or you need to use a different type of paint in the room (like waterproof paint in a damp basement), there are other accessible options. You could fit a steel panel over the wall, try magnetic wallpaper, or apply chalk paint instead. 

If you want an inexpensive shortcut, hang a pinboard or chalkboard on your wall. These removable options are ideal if you’re a renter who can’t repaint or plan to move in the near future.

Many types of peel-and-stick wallpaper can hold up to environments with some level of moisture, such as bathrooms—especially peel-and-stick wallpapers made of vinyl or polyester. However, if you’re considering wallpapering a bathroom that sees a lot of moisture, like a kids’ bathroom or a full bathroom with a steamy shower and inadequate ventilation, even the highest quality wallpapers will peel.

No. If you overlap seams, the wallpaper will not come out flat. In addition to possibly throwing off your pattern match between rolls, overlapping seems necessary. If wallpaper is properly acclimated, and temperature and moisture conditions are optimal during installation, there is no reason to fear shrinkage as it dries.