Are there any negative ramifications to cutting down a chrome lined barrel with regards to the chrome lifting, etc.?

Nope - go ahead and cut it.

Most people are used to decorative chrome, like on bumpers, that are actually several layers of plating using softer metals specifically to fill in any small imperfections and let you polish them out.  Usually it's a copper base, followed by nickel, with a chrome top layer.  This is "triple chrome plating," and while nice looking, the layers can peel.

The plating in a barrel bore, OTOH, is chrome plated directly onto the steel.  It's very hard and very durable.  It won't peel.  Cut your barrel, face it, cut a nice crown, and don't worry about it.

I wonder why PETE at LEGAL TRANSFERS [who has been building ARs for 25+ years ]claims it is a problem ? he has built a few in his time and should know.

I agree 100%, Cut ti down & don't worry about the chrome flaking, I have done this several times & never had a problem.

Sorry, but vague, detail-free, second-hand hearsay is completely worthless and a waste of our time.  If you don't have any personal experience to share, then don't even bother.

Both my and garr's personal experience show that cutting down chrome-lined barrels is not a problem.

I've cut down a FAL chromelined barrel with no problem. I used an abrasive wheel in my circular saw to cut the barrel, cleaned up the face with a belt sander and then a muzzle facing (?) tool from brownells.  I used a 45 deg crowning tool initially but the chrome seemed to make it chatter no matter what so i ended up using the booger picking method with a marble and valve grinding compound.

I'd tend to think with all the chromelined barrels cut by Kurt at KKF for the members of this board, myself included, if there were any sort of problems or issues with the practice we'd certainly have heard about it by now...

My chromelined barrels that were cut have no problems, are more accurate than I am, and have send a great deal of ammo downrange...