Yes, he does. You need to boost the humidity up to around 80, soak often, and wet his shell once-twice daily to get it to stop, and start growing normally.
The substrate on his shell looks pretty dry. Do you have a closed chamber or open topped enclosure? Show us a pic of the whole enclosure and we can give you some better suggestions on what to change.
Red bulbs should never be used. White for day time and dark at night. Use a CHE or RHP set on a thermostat for night heat.
It looks dry to me too. Maybe the red lighting is deceiving my eyes. I suggest that you test your hygrometer for accuracy. There is a simple test that you can find online to do this. Most of us that have raised baby sulcata could not maintain 80% RH, or anything close to that, in open top enclosures.